In April 2019, Jet Airways was forced to stop operations due to mounting losses and a debt of nearly Rs 8,000 crore. The Jalan-Kalrock consortium’s restoration plan was accepted by the airline’s CoC in October 2020.
Jalan Kalrock Consortium (JKC), the successful resolution applicant of Jet Airways, has finished the additional infusion of Rs 100 crores to revive the now-defunct carrier. On August 28, the National Company Law Appellate Tribunal (NCLAT) granted the Jalan Kalrock Consortium (JKC) a deadline extension.
According to the court-approved resolution plan, JKC has now completed all of its financial commitments to acquire ownership of the illustrious airline, totaling Rs 350 crore ($42.1 million) equity, the press release from the airlines said.
“The consortium’s plan to save the airline has not changed. The new promoters are committed to getting the airline’s operations back up and operating by 2024. The debut date of Jet Airways will now be the subject of additional announcements in the upcoming weeks, the statement stated.
On August 28, the National Company Law Appellate Tribunal (NCLAT) extended the deadline for the Jalan Kalrock Consortium, the chosen resolution applicant for Jet Airways, to pay its lenders Rs 350 crore. JKC has till September 30 to make the payment.
The appeal panel authorized the repayment of Rs 350 crore with Rs 150 crore from their performance bank guarantee. The creditors opposed the use of the bank guarantee on the grounds that it was a backup and could not be used at this time. On October 4, the matter will probably be heard once more for additional consideration.
JKC asked for a delay in making a payment that was due on August 31. JKC had been given instructions by NCLAT to submit a form indicating the updated payment schedule. Senior attorney Ravishankar Prasad, who previously represented JKC, told the tribunal during prior sessions that the consortium will deposit Rs 100 crore by August 31 and another Rs 100 crore by the end of September.
In the case of the creditors of Jet Airways, JKC has not yet complied with the prerequisite requirements imposed by the NCLT’s ruling. The accusation made by the creditors is that JKC is not injecting enough money to cover its debts. JKC, however, has argued that in order for the creditors to pay money, they must begin the process of transferring control of the airline.
In the meantime, the airline’s creditors have also filed a case with the Supreme Court challenging the NCLAT’s May judgment granting JKC an extension to satisfy its condition criteria. On July 10, the creditors informed the Supreme Court that the airline should be shut down since the NCLT’s resolution plan was unworkable.
On January 13, NCLT authorized the transfer of the troubled airline to the group headed by the businessman Murari Lal Jalan of the United Arab Emirates and London’s Kalrock Capital. The CoC, however, complained to NCLAT over the move.
In April 2019, Jet Airways was forced to stop operations due to mounting losses and a debt of nearly Rs 8,000 crore. The Jalan-Kalrock consortium’s restoration plan was accepted by the airline’s CoC in October 2020.
