Tuesday, November 03, 2020

Jet Airways Insolvency: Kalrock Capital and Murari Lal Jalan’s consortium deposits Rs 150 crore as performance security

A day before the final deadline to submit a performance security bond, Kalrock Capital and Murari Lal Jalan’s consortium has deposited the performance security of approximately Rs 150 crore.

Earlier on October 27, MoneyControl reported the extension of the deadline till November 3 to submit a performance security bond. The buzz gained enough momentum that Kalrock Capital and Murari Lal Jalan’s consortium may have missed the deadline. However, sources in the know clarified that this was not the case.

"The selected bidder has submitted the performance security of Rs 150 crore to the Resolution Professional," Hindu BusinessLine quoted sources confirming the report.

With the Insolvency and Bankruptcy Code in place, a bidder has to deposit this amount to bind the party in a bond, so that she or he doesn't withdraw its plan later. In case the winning bidder is unable to execute the proposed plan, the deposited amount is forfeited.

As per the proposed plan, the Kalrock and Jalan consortium had placed a bid of nearly Rs 1,000 crore and will get 9.5 percent of equity in Jet Airways along with 7.5 percent equity in loyalty rewards company InterMiles.

Once the National Company Law Tribunal (NCLT) approves the plan, the new owners will have to approach the Ministry of Civil Aviation and industry regulator DGCA for multiple clearances. These clearances include getting back the air operator certificate to the slots at the airport that it needs to land and take off flights.

02/11/20 Moneycontrol

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