New Delhi: Bankrupt Jet Airways plans to sell its Netherlands business to KLM Royal Dutch Airlines, according to a regulatory filing. The domestic full-service carrier, which shuttered operations last April, is undergoing insolvency resolution process.
The insolvency resolution professional managing the affairs of Jet Airways said various options are being explored for the ‘company’s resolution and maximising the value for its stakeholders’, as per the filing.
Providing an update, the company said there is a separate liquidation proceeding ongoing in the Netherlands and that the resolution professional has agreed a co-operation protocol with the Dutch trustee appointed by the local court. ‘In this context, the company and Dutch trustee have entered into a conditional sale and purchase agreement with Koninklijke Luchtvaart Maatschappij NV, on 13 January 2020, for the proposed resolution of business activities of the company in the Netherlands as approved by the committee of creditors,’ it added.
Koninklijke Luchtvaart Maatschappij NV is KLM, the flagship carrier of the Netherlands. ‘The proposed resolution is subject to the completion of several conditions including statutory and regulatory clearances, both under Indian law and Dutch laws,’ the filing said. If completed, the transaction would only involve a sale of part of the Jet Airways business activities and would not impact the shareholding pattern of the company in any manner, it added. Shares of Jet Airways were trading 4.92 per cent lower than their previous close on BSE at Rs 45.40 apiece.