Jet Airways stock hits 5% upper circuit after Boeing 777 aircraft held by Dutch is sold

Earlier in 2019, Jet Airways was declared bankrupt in the Netherlands and thereafter as per the Noord-Holland District Court order dated May 21, 2019, insolvency proceedings were initiated against the Company.

Sep 06, 2021 03:09 IST India Infoline News Service

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Jet Airways stock was trading at the upper circuit on Monday after the Dutch Administrator sold the company's Boeing 777-300ER aircraft to IAGCAS 777, LLC for USD 09 million under the Dutch Insolvency Process.

As per the regulatory filing, Jet Airways said that the "information received from the Dutch Administrator, the Equipment under the custody of the Dutch Administrator has been sold to IAGCAS 777, LLC for USD 09 million under the Dutch Insolvency Process."

Jet Airways said that "the sale of Equipment is as per the terms of the Protocol, whereunder it is agreed that the proceeds from the sale of Equipment will be first utilized for the closure of Dutch Insolvency Process in Netherland, to ensure the Company is no more declared insolvent in the Netherlands and balanced funds, if any, shall be repatriated to India which shall be dealt as per the provision of the Insolvency and Bankruptcy Code."

"We wish to further inform that subsequent to the sale of the Equipment and after completing the requisite formalities, the Dutch Insolvency Process shall stand concluded," Jet Airways added.

Earlier in 2019, Jet Airways was declared bankrupt in the Netherlands and thereafter as per the Noord-Holland District Court order dated May 21, 2019, insolvency proceedings were initiated against the Company appointing  Rocco Mulder (“Dutch Administrator”) as the administrator (trustee to manage the estate of the Company in the Netherlands).

At that time, the Dutch Administrator took custody of the assets of the Company in the Netherlands on the date of initiation of such insolvency proceedings which included one Boeing 777-300ER aircraft (bearing MSN 35164 and Indian Registration Mark VT-JEW) parked at Schiphol Airport (“Equipment”).

Further, as per the direction of the Hon’ble National Company Law Appellant Tribunal (“NCLAT”), Cross Border Insolvency Protocol (“Protocol”) was agreed between Ashish Chhawchharia (erstwhile Resolution Professional of the Company in India) and Rocco Mulder ( Administrator of the Company in the Netherlands) and the same was approved by Hon’ble NCLAT by order dated September 26, 2019 (protocol was signed to co-operate with each other in the insolvency process to maximize the value to stakeholders and early resolution of ongoing litigation(s)).

At around 3.21 pm, Jet Airways was trading at the upper circuit of Rs84.30 per piece up 4.98% on Sensex.

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