Jet Airways' CIRP concludes; seven-member monitoring panel to manage airline under resolution plan

Mumbai: A seven-member monitoring committee, including members appointed by the winning bidder Jalan Kalrock Consortium and the lenders, will soon start managing the day-to-day affairs of Jet Airways till the resolution process is complete. Further, Ashish Chhawchharia has ceased to be the resolution professional of the airline, according to a regulatory filing. On 22 June, the National Company Law Tribunal (NCLT) approved the consortium’s resolution plan for grounded Jet Airways, subject to certain conditions. The full-service carrier, which suspended operations in April 2019, was undergoing Corporate Insolvency Resolution Process (CIRP). “The CIRP of the company has therefore concluded and Mr Ashish Chhawchharia has ceased to be the resolution professional of the company, effective on and from 25 June, 2021,” the filing to the stock exchanges said on Saturday. As per the terms of the approved resolution plan, a seven-member monitoring committee is required to be constituted. Three members each would be appointed by the consortium and the financial creditors, respectively. Also, there would be an “independent insolvency professional appointed by the financial creditors (preferably the existing resolution professional)” in the panel, as per the filing. The committee would supervise the implementation of the resolution plan. “… terms of appointment and duties of the monitoring committee will be as set out in the resolution plan and the day-to-day operations and the management of the company shall be carried out by the monitoring committee until the closing date as defined in the resolution plan,” the filing said. As per the filing, the actions in respect of the appointment as well as duties and functions of the committee, and implementation of the resolution plan will be taken in accordance with the resolution plan. The same would be subject to any directions that may be issued by NCLT in this regard. On 25 June, NCLT published the written order approving Jalan Kalrock Consortium’s resolution plan and the approval is subject to certain directions. A separate order regarding the directions would be issued later by the tribunal. While clearing the resolution plan, NCLT also made it clear that it will not give any direction on the issue of airport slots for the airline, citing that the matter will be handled by the government or the appropriate authority concerned. On 22 June, Jalan Kalrock Consortium said it will decide on the next steps after receiving NCLT’s written order and emphasised that it will work with the aviation authorities to see the airline taking wings again.