Friday, October 16, 2020

Jet Airways d-day: Voting on resolution plans to conclude today, Kalrock Capital consortium leading race

Jet Airways’ fate hangs in the balance as its lenders are set to conclude voting on the resolution plans for the airline this evening. The consortium led by London-based financial advisory firm Kalrock Capital has offered a higher return to lenders compared to the consortium led by the Haryana-based Flight Simulation Technique Centre (FSTC), as per four people in the know.

The Kalrock Capital consortium also includes Murari Lal Jalan, a UAE-based entrepreneur. FSTC is led by a former Jet Airways employee called Sanjay Mandavia, and includes Imperial Capital Investments LLC (ICIL), and Big Charter Pvt Ltd (BCPL).

According to a person directly in the know, Kalrock Consortium’s offer includes a total payout to all creditors of Rs 866 crores. This includes Rs 380 crores payout to the financial creditors, and non-convertible debentures (NCDs) guaranteeing Rs 391 crores of net present value (NPV).

This excludes the airport and parking charges, which the consortium will have to bear if selected. Kalrock has also offered equity to equity to lenders in both JetAirways and Jet Privilege Private Limited (JPPL).

FSTC consortium’s offer is pegged at approximately Rs 770 crores in total, and also includes equity for lenders in both the airline and JPPL, added this person.

A senior executive of a bank with significant exposure to the airline told CNBC-TV18 on the condition of anonymity that the CoC is leaning towards picking the bid made by the Kalrock Capital consortium.

16/10/20 Ritu Singh/CNBC TV18

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