The Insolvency and Bankruptcy Board of India (IBBI) has proposed a two-part resolution plan structure to ensure the swift takeover of stressed firms without delay. The plan aims to prevent asset value erosion and streamline the resolution process. It also addresses the issue of distribution of resolution proceeds among stakeholders. The regulator has sought public comments on the proposed changes to regulations, including providing clarity on the entitlement of dissenting financial creditors and making the fair value of a stressed firm part of the information memorandum for potential suitors.
Lenders to Jet Airways have approached the Supreme Court, accusing the Jalan-Kalrock consortium of failing to implement the resolution plan. They argue that the consortium has not taken appropriate steps to meet its obligations and are therefore seeking the winding up of the airline. The matter is scheduled to be heard on Thursday. The lenders also raised concerns about ongoing investigations against one of the investors in the consortium.
Creditors of Jet Airways raise concerns over the source of funds deposited by the Jalan-Kalrock Consortium, which do not align with the resolution plan. Additional Solicitor General N Venkataraman questions the possibility of money laundering. Lenders request time to file a reply. Consortium representative alleges lenders refuse Jet’s ownership transfer.
