Jet Airways insolvency: Resolution may halt unless funds released, says RP counsel to NCLT

The legal representative of the resolution professional (RP) for Jet Airways on Friday submitted a progress report on the resolution plan of the airline to the National Company Law Tribunal (NCLT). The legal counsel also sought directions from the NCLT asking some lenders of the airline to expedite the release of interim funding for the insolvency proceedings. The tribunal will hear the matter on October 9.

In the first meeting of the Committee of Creditors (CoC) in July, lenders to Jet had sanctioned interim funding of around Rs 70 crore. Of the approved amount, only the State Bank of India has disbursed funds so far. Some lenders are yet to sanction the disbursal, the RP’s legal counsel told the tribunal. “The initial disbursement is almost exhausted. That means that the corporate insolvency resolution process could come to a grinding halt,” the legal representative to the RP told the tribunal.