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Home / Business / Jet Airways to sell BKC space to clear HDFC dues

Jet Airways to sell BKC space to clear HDFC dues

The lenders have kept the reserved price of Rs 490 crore for the property
Jet Airways’ insolvency resolution professional Ashish Chhawchharia had moved the NCLT to seek approval to sell its third and fourth floor in Godrej BKC building to clear overseas debt and transfer the title of six aircraft under the Export-Import Bank of the US to the corporate debtor.

PTI   |   Mumbai   |   Published 14.06.20, 09:41 PM

The National Company Law Tribunal (NCLT) has allowed Jet Airways to sell its premises in Bandra Kurla Complex (BKC) to settle Rs 360 crore dues of mortgage lender HDFC, clear overseas debt and cover corporate insolvency resolution process costs.

Jet Airways’ insolvency resolution professional Ashish Chhawchharia had moved the NCLT to seek approval to sell its third and fourth floor in Godrej BKC building to clear overseas debt and transfer the title of six aircraft under the Export-Import Bank of the US to the corporate debtor.

The insolvency professional had sought the permission of the tribunal for the sale f the premises after a resolution was passed at the 10th committee of creditors (CoC) meeting held on April 24 with the approval of 74.45 per cent votes.

The principal bench of NCLT in its order on June 11 granted permission to the grounded airline to sell the premises and utilise the proceeds to settle Rs 360 crore dues of HDFC against the mortgage lender’s claim of Rs 424 crore.

The lenders have kept the reserved price of Rs 490 crore for the property, it added.

Auction for the same is expected to take place on June 26, according to sources.

The order further said that the US Exim Bank holds a charge over six aircraft, of which the cumulative depreciated value is over $200 million.

“The US Exim bank has agreed that upon the payment of $13 million (around Rs 90 crore), it will transfer the title of the six aircraft to the corporate debtor,” the order said. 

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