Wednesday, January 25, 2023

Jet Airways lenders move NCLAT against Jalan-Kalrock consortium

Lenders of debt-ridden Jet Airways on Tuesday filed an appeal in the National Company Law Appellate Tribunal (NCLAT) against implementation of the resolution plan by the Jalan-Kalrock consortium, according to sources.

The sources said the lenders have maintained that the condition precedent mentioned in the resolution plan of the consortium has not been met. And therefore, the plan is not valid.

“The lenders want the plan to be circled back to the committee of creditors (CoC) for fresh consideration,” the sources said.

On January 13, the National Company Law Tribunal (NCLT) had allowed the application of Kalrock-Jalan to implement its resolution plan for Jet Airways. NCLT permitted infusion funds into the grounded airline for its revival.

NCLT, in its order, said, “It goes without saying that the plan approved by this tribunal has to be implemented without any modification much less than on satisfaction of any other undertaking. And thus, the effective date and completion date of condition precedent under the plan shall have to be read as May 20, 2022.”

Jet Airways shut operations in April 2019 due to a financial crisis. The airline then underwent a resolution process under the Insolvency and Bankruptcy Code (IBC).

The revival plan submitted by the consortium was cleared by Jet’s CoC in October 2020. The NCLT approved the plan in June 2021.

24/01/23 Business Standard

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