Jet Airways Insolvency: Resolution Professional, Dutch Bankruptcy Administrator agree to terms of cooperation

The National Company Law Appellate Tribunal (NCLAT) was today informed that the Resolution Professional in the ongoing Jet Airways insolvency proceedings and the Dutch Bankruptcy Administrator have agreed to all the terms of a cooperation agreement between them..Jet Airways is facing Insolvency proceedings in the Netherlands as well, where it was declared bankrupt in response to a complaint filed by two European creditors..Subsequently, a Bankruptcy Administrator or “trustee in charge” was appointed by the Dutch court for certain offshore properties of Jet Airways..The statement was made before a three-member NCLAT bench headed by Chairperson Justice SJ Mukhopadhaya by the counsel appearing for the Resolution Professional and the Dutch Administrator..The Appellate Tribunal was also informed that the Committee of Creditors has also agreed to all the terms of cooperation except for one..The counsel of the Resolution Professional stated that the issue pertained to the Dutch Administrator attending CoC meetings..The Appellate Tribunal, however, noted that the question of whether the CoC has the power to “accept or reject” the terms of the agreement would be deliberated upon by it during the course of the appeal..While directing the Resolution Professional and the Administrator to bring the terms of the agreement on record, the Appellate Tribunal adjourned the matter till September 24..In the last hearing, the NCLAT had directed the Jet Airways Resolution Professional to work with the Dutch Bankruptcy Administrator in the ongoing Jet Airways Insolvency matter and then formulate the “terms of agreement” with him..While admitting State Bank of India’s insolvency plea against Jet Airways, the National Company Law Tribunal in June had rejected the Dutch Administrator’s plea to recognize their proceedings. The Dutch administrator had then approached the Appellate Tribunal against the rejection..According to the order of NCLT passed on June 20, the total amount of debt granted to the Jet Airways by SBI alone stands at Rs 1,795.21 crore. There are several other financial creditors who have also granted a loan to Jet Airways. Also, the default amount stated to be Rs. 462.3938 crore were overdrawn amount over sanctioned limits of the cash credit facilities by SBI alone..The Dutch Administrator was represented by Advocate Sumant Batra. The Resolution Professional was represented by Senior Advocate Abhinav Vashisht.