New Delhi: The National Company Law Tribunal (NCLT) has approved the revival plan for grounded airline Jet Airways on Tuesday. It has approved the resolution plan for Jet Airways submitted by the Kalrock-Jalan consortium, giving a ray of hope to the airline.
The Directorate General of Civil Aviation (DGCA) and Ministry of Civil Aviation (MCA) have been given 90 days starting today to allot slots to the airline, reported CNBC-TV18.
As per the NCLT order, the DGCA will take the final decision on the allotment of slots to the airline. A government official has told the news channel that the DGCA and MCA will study the detailed order before deciding on slots.
The airline’s slots had been allocated to other airlines after it was grounded. The decision marks the first step in what could be the return of India’s oldest and largest private airline.
In a recent affidavit submitted to the bankruptcy court, the MCA and DGCA said that Jet Airways may not be in a position to claim historical slots. The government and the civil aviation regulator also said that the allocation of slots would be done in accordance with existing guidelines.
Following the NCLT’s approval, shares of Jet Airways hit the 5 per cent upper circuit on the National Stock Exchange (NSE). At 1:30 pm, Jet Airways was up 4.96 per cent at Rs 99.45 per share.
Jet Airways was grounded in April 2019 after suffering a severe financial crunch. An SBI-led consortium had then referred it to the NCLT for resolution under the insolvency and bankruptcy code (IBC).
In October 2020, a consortium led by Murari Lal Jalan and Kalrock Capital secured the bid for Jet Airways after several rounds.
The Kalrock-Jalan consortium is believed to have offered Rs 1,183 crore as repayment over a period of five years to financial creditors, employees and other staff of Jet Airways. It has also offered about a 9.5 per cent stake in Jet Airways and a 7.5 per cent stake in Jet Privilege to financial creditors.
It may be noted that Kalrock Capital is a UK-based asset management company and Murari Lal Jalan is a UAE-based entrepreneur.
22/06/21 India Today
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