Quash Jet Airways rescue plan,PNB requests NCLAT

PSB Punjab National Bank has approached the National Company Law Appellate Tribunal (NCLAT) and requested to quash the rescue plan for the debt-laden Jet airline. PNB alleged that there were irregularities in the revival plan in its plea, which puts at risk the airline’s plan to resume operations after being grounded for two years. The bank argued that Jet’s court-appoint rescue official had initially accepted its claim of nearly Rs 1,000 crore from the airline’s backers, but later reduced it by Rs 2 billion. 

As per Reuters report the state-owned bank said a reduction of the amount was arbitrary and illegal. The NCLAT has agreed to hear PNB’s plea, as per Additional Solicitor General of India, Aman Lekhi, who argued on behalf of PNB. The case will be heard on September 21. Any decision in favour of PNB could severely hurt Jet Airways’ revival plan, which was approved last year by financial creditors and susequently by the NCLAT in June. This hurdle may also hit the Jet Airways plan to resume flying operations from next year in may. 

Meanwhile, Jet Airways on Saturday said one of its wide-body Boeing 777 aircraft has been sold, and the proceedings will mainly be utilised to close the process. The said aircraft was under the custody of the Dutch Administrator due to the insolvency proceedings against the company in the Netherlands, The Airways is facing insolvency proceedings in the Netherlands in response to a complaint, where it was declared bankrupt in response to a complaint by two European creditors.