The seven-member supervisory board will carry out day-to-day operations and management of Jet Airways until the remediation plan proposed by the Jalan Kalrock consortium is completed.
The Mumbai Judicial Council of the National Court of Law Companies (NCLT) approved the consortium’s resolution plan on June 22nd.
With NCLT approval, the Corporate Insolvency Resolution (CIRP) process was concluded and Ashish Chhawchharia ceased to be the company’s professional resolution authority, effective June 25, 2021, Jet Airways said in a regulatory stock exchange filing.
Under the terms of the approved remediation plan, a seven-member supervisory board must be constituted, he said. The board will oversee the implementation of the remediation plan.
While the consortium and financial creditors will appoint three board members each, financial creditors will appoint an independent insolvency expert, it added.
“… the terms of the appointment and duties of the supervisory board will be set out in the resolution plan, and the day-to-day operations and management of the company will be conducted by the supervisory board until the closing date as defined in the resolution plan,” the airline said.
Upon submission of the request, the actions related to the appointment, as well as the duties and functions of the board, and the implementation of the resolution plan will be taken in accordance with the resolution plan. The same would be subject to any instructions that the NCLT may issue in this regard.
On June 25, the NCLT issued a written order approving the Jalan Kalrock consortium remediation plan. Approval is subject to certain instructions. The tribunal will later issue a separate order regarding the instructions.
In clearing the remediation plan, NCLT has also made it clear that it will not provide any direction regarding the airline slots for the airline, invoking that the issue will be managed by the government or the appropriate authority.
The Jalan Kalrock consortium said on June 22 that it would decide on the next steps after receiving a written order from NCLT and stressed that it would work with aviation authorities to see that the airline that suspended operations in April 2019 was taking wings again.