Jet Airways India) Ltd. plans to sell its Netherlands business to KLM Royal Dutch Airlines, even as the airline undergoes insolvency at India's bankruptcy courts.
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", according to a regulatory filing on Friday.
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 January 13, 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 stated.
Also Read: Jet Privilege Rebrands As ‘InterMiles' Amid Jet Airways' Insolvency
If completed, the transaction would only involve sale of only a part of Jet Airways' business activities and would not impact the shareholding pattern of the company.
On Friday, Jet Airways shares fell 4.90 percent to Rs 44.65 apiece on the NSE while the benchmark Nifty 50 shed 0.03 percent to end the day at 12,352.35 points.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
