Thursday, October 08, 2020

Jet Airways’ lenders select Kalrock Capital, UAE Investor as new owners of grounded airline

New Delhi: Lenders to Jet Airways have reportedly chosen UK-based Kalrock Capital, an asset management company, and UAE-based entrepreneur Murari Lal Jalan as the new owners of the bankrupt airline. It is worth mentioning here that the crisis-hit company became the first domestic airline to go into bankruptcy after the National Company Law Tribunal (NCLT) admitted an insolvency plea filed by State Bank of India (SBI) on behalf of 26 lenders in June 2019.

“Our consortium was chosen by the committee of creditors in a meeting that concluded this evening,” Igor Starha, managing partner at Kalrock told the Economic Times on the phone. has not verified this story and does not vouch for its accuracy. Another group comprising Haryana-based Flight Simulation Technique Centre, Mumbai’s Big Charter and Abu Dhabi’s Imperial Capital Investments was also in the race.

It has been reported that the Committee of Creditors (CoC) led by SBI late last month found the initial bids as unsatisfactory, and decided to take up the revised offers next week.

Debt-ridden Jet Airways—India’s oldest private carrier—formally stopped flying in April last year because of acute fund shortage and huge dues. The crisis-hit airline owed over Rs 8,000 crore to banks, and thousands of crores more in arrears to vendors, lessors and staff. Many industry insiders are of the view that a new owner will face many challenges to turn the defunct airline around, including its existing debt obligation, pending dues towards employees, and high costs of reviving operations as maintenance costs to refit grounded aircraft are going to be huge.


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