Jet Airways Insolvency: Tribunal Directs Former Resolution Professional To See JKC's Eligibility
The State Bank of India-led committee of creditors had raised concerns about the source of funds infused by JKC in the airline.
The National Company Law Tribunal on Tuesday directed the erstwhile resolution professional of Jet Airways, Ashish Chhawchharia, to certify the eligibility of Jalan Kalrock Consortium to be a resolution applicant under the Insolvency Code. It must be certified within three weeks.
The direction comes after the State Bank of India-led committee of creditors raised concerns before the Appellate Tribunal about the source of funds infused by the consortium in the insolvent airline.
On Sept. 29, JKC had completed the payment of Rs 350 crore to Jet's creditors as part of its total equity commitment to revive the airline. However, the committee of creditors subsequently raised concerns after media reports surfaced about fraud-related investigations into a consortium investor.
One of the investors, Florian Fritsch, is reportedly under investigation for fraud and money laundering in a principality in Austria.
As per the insolvency code, someone who has been part of a fraudulent transaction, within or outside India, is not eligible to be a resolution applicant.
According to the committee of creditors, the reports not only raised concerns about the source of funds but also about the creditworthiness and financial ability of JKC to revive the debt-laden airway. Therefore, the consortium's eligibility as resolution applicants required reconsideration.
However, the resolution professional, in a recorded meeting yesterday, reaffirmed JKC's eligibility as a resolution applicant, the consortium said. It has also submitted an affidavit affirming the same. The court will now hear the lender's application on Nov. 6.
On Monday, Jet lenders moved the Supreme Court against JKC, seeking clarity on the fraud investigations faced by its investor. The Supreme Court will hear the matter next on Oct. 12.
