NCLT has permitted Jet Airways to sell its Bandra Kurla Complex premises in order to pay Rs 360 crore debt amount to HDFC, clear foreign debts and cover corporate insolvency resolution process costs. Ashish Chhawchharia of Jet Airways asked for approval from NCLT to sell the Airline Firm’s third and fourth floor in Godrej BKC building to raise fund for clearing overseas debt to transfer the title of six aircraft under Export-Import Bank of US to the corporate debtor, which would help in maximising the value of the defunct airline.
The request for approval came after a resolution was passed on April 24 with 74.45 per cent votes at the 10th committee of creditors (CoC) meeting. The Principal Bench of NCLT has accepted the request on 11 June. Jet Airways owes Rs 8,000 crore of debt to banks, the majority of which are from PSUs. SBI has led the lender consortium for filing insolvency petition against the airline firm which had been admitted on June 20, last year.
The order said, “The property is a non-core asset of the grounded airlines, which was never used by Jet as part of its airlines business.” And added, “The lenders have kept the reserved price of Rs 490 crore for the property”. According to sources, the auction of the property is expected to begin on June 26.
According to the order, US Exim Bank holds a charge over six aircraft with over $200 million cumulative depreciated value. It continued, “If the amount payable to US Exim is not paid, US Exim will become entitled to repossess the six aircraft. The US Exim bank has agreed that upon the payment of $13 million, it will transfer the title of six aircraft to the corporate debtor. Therefore, after this payment to the US Exim, the defunct airlines can add six aircraft to its fleet which is around USD 200 million (Rs 1,400 crore).”