Air India gets Jet's unused foreign traffic rights
State-run Air India seems to be finally getting its preferential rights in allocation of traffic rights over foreign routes after losing it to private carriers in the previous UPA government.
 
The government has decided to allot it about 5,700 weekly seats out of grounded Jet Airways' unused quota on the lucrative India-Dubai route.
 
The public sector airline has also been promised over 5,000 seats on India-Qatar route besides about 4,600 additional seats to and from London following the re-allocation of grounded Jet's unused international traffic rights.
 
A Civil Aviation Ministry told IANS that Air India will get preference in allocation of bilateral seat entitlements.
 
"The allocation would be for the ongoing summer schedule and considered temporary given that efforts are on to revive Jet Airways," said a reliable source.
 
Amid faint possibility of grounded Jet Airway's revival anytime soon, the ministry had on May 3 held a meeting with local carriers to discuss re-allocation of the airline's foreign traffic rights.
 
Private carriers SpiceJet, IndiGo, GoAir, Vistara and Air India had pitched for bigger share of the pie in the last meeting. While IndiGo co-founder Rahul Bhatia had suggested for allocating foreign traffic rights in proportion to various airlines' fleet capacity, Vistara argued that smaller airlines be given bigger share. 
 
Jet Airways had last month withdrawn operations due to severe fund crunch and remain grounded in absence of a viable revival plan.
 
While re-allocation of traffic rights would ensure additional capacity on various popular foreign routes thus reducing fare level, it will significantly affect the valuation of Jet Airways.
 
Investors are already miffed over the government's move to re-allocate its slots at various domestic airports.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

User

Lenders to consider NBCC plan for Jaypee Infratech as NCLAT refuses stay
NBCC India Ltd's offer for the debt-laden realty firm Jaypee Infratech Ltd (JIL) will be put to vote by a committee of creditors (CoC) later this week with the National Company Law Appellate Tribunal (NCLAT) on Tuesday refusing to stay the proceedings.
 
ICICI Bank and a few other banks had on Tuesday approached the NCLAT with the plea that as they were not a part of the CoC of bankrupt JIL and thus had no voting rights, they should be heard before the lenders decided on the NBCC offer. 
 
After seeking clarifications from the revised offer for the JIL given by the NBCC, the CoC is set to vote on the proposal. The voting is expected to start on Thursday and end by Sunday. The decision of the lenders, however, will be subject to the outcome of an appeal filed by ICICI Bank and the other lenders. 
 
Last year, the Allahabad bench of the NCLT had ordered Jaiprakash Associates Ltd (JAL) to return 858 acres of land to the JIL to facilitate settlement process by lenders. The parent firm JAL had mortgaged this land pool with lenders such as State Bank of India, ICICI Bank, IDBI Bank, and Standard Chartered Bank to obtain loans. It got the land transferred to itself after lenders had started classifying the accounts of its subsidiary JIL as non-performing assets. 
 
The banks had approached the NCLAT against the NCLT order and the case is still sub judice.
 
With the ground now clear for CoC voting for NBCC's revised offer, all eyes are on the PSU developer that has put a lot of condition on its bid and has so far refused to dilute those conditions. It is understood that the NBCC had demanded that all income tax liabilities should be extinguished and a dispensation from seeking consent of YEIDA (Yamuna Expressway Industrial Development Authority) for any business transfer is granted. 
 
The CoC will consider NBCC's offer after it rejected Mumbai-based Suraksha Realty's bid on May 3, through the voting process.
 
Earlier Anuj Jain, the interim resolution professional, had in a letter to the CoC, categorically said that the state-run infrastructure firm's proposal is conditional and based on being granted relief from income tax (I-T) liabilities. Acceptance of its bid by the CoC is thus difficult. 
 
The NBCC has offered to settle the total operational debt aggregating to Rs 9,712 crore by paying Rs 20 crore. Operational debt comprises I-T department claims, additional compensation claims of Yamuna Expressway landowners, and claims of other operational creditors. It has promised to deliver flats to homebuyers in four years. It has also offered 1,400-acre land worth Rs 6,000 crore as well as Yamuna Expressway highway to lenders.
 
Its proposal also talks about banks monetising Yamuna Expressway and providing half of the realised amount to the public sector undertaking, which it will utilise as an upfront payment. The NBCC will also fund the gap of about Rs 1,500 crore between estimated construction cost and receivables from customers.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

User

NCLAT to decide CoC powers in Essar Steel bankruptcy case
The National Company Law Appellate Tribunal (NCLAT) hearing the Essar Steel bankruptcy proceedings said it would decide on the powers of the Committee of Creditors (CoC).
 
The development came on Tuesday as senior advocate Kapil Sibal argued that "distribution of the financial package" arising from the sale of Orissa Slurry Pipeline Infrastructure (OSPIL) in the Essar Steel bankruptcy proceedings by the CoC "is illegal and discriminatory".
 
Sibal was arguing on behalf of Standard Chartered Bank during the hearing of Essar Steel bankruptcy proceeding in NCLAT. Standard Chartered Bank (SCB) is a financial creditor of Essar Steel (ESIL).
 
Sibal argued the "illegality resulted from secret negotiations between the core committee and AM (ArcelorMittal) India" and this was detrimental to all creditors.
 
He termed the secret settlement with the major lenders of OSPIL as a "scam". Standard Chartered Bank has alleged that the amount of Rs 2,500 crore should have been paid to it rather than getting diverted to lenders of OSPIL.
 
Subsequently, the bench observed that out of the 10 people, who are financial creditors of ESIL, five to six are lenders to OSPIL and wanted to know if Rs 2,500 crore would go only to these lenders.
 
Further, the bench said that it would decide on the power of CoC. Besides, Sibal said that the reduction in the upfront amount from Rs 42,000 crore to Rs 39,500 crore and the agreement to delegate the manner of distribution was evidently designed to prejudice the right of SCB.
 
He cited the letter of September 10, 2018 and a note dated September 25, 2018, wherein AM India had already decided the manner of distribution amongst secured financial creditors.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

User

We are listening!

Solve the equation and enter in the Captcha field.
  Loading...
Close

To continue


Please
Sign Up or Sign In
with

Email
Close

To continue


Please
Sign Up or Sign In
with

Email

BUY NOW

online financial advisory
Pathbreakers
Pathbreakers 1 & Pathbreakers 2 contain deep insights, unknown facts and captivating events in the life of 51 top achievers, in their own words.
online financia advisory
The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Online Magazine
Fiercely independent and pro-consumer information on personal finance
financial magazines online
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
financial magazines in india
MAS: Complete Online Financial Advisory
(Includes Moneylife Online Magazine)