The revival of Jet Airways will perhaps take more time than what was expected. Jalan-Kalrock consortium (JKC), which had taken over the resolution process of the fallen carrier, has informed the National Company Law Tribunal (NCLT) that it needs more time to repay creditors and implement the plan.
After more than 25 years of operations, full-service airline Jet Airways was grounded on April 17, 2019, amid a severe cash crunch. The insolvency process began in June 2019 and the NCLT approved a resolution plan submitted by the Jalan-Kalrock Consortium on June 22, 2021.
he revival of Jet Airways will perhaps take more time than what was expected. Jalan-Kalrock consortium (JKC), which had taken over the resolution process of the fallen carrier, has informed the National Company Law Tribunal (NCLT) that it needs more time to repay creditors and implement the plan.
After more than 25 years of operations, full-service airline Jet Airways was grounded on April 17, 2019, amid a severe cash crunch. The insolvency process began in June 2019 and the NCLT approved a resolution plan submitted by the Jalan-Kalrock Consortium on June 22, 2021.
After the tribunal ruled the case in favour of JKC, it was given 180 days to make payments of Rs 180 crore to the erstwhile creditors of the airline and Rs 250 crore to former employees. While May 15 is the last date to make the payments, the consortium has made no payments so far.
The NCLT has also fixed November 16 as the effective date for implementing the consortium's resolution plan.
The consortium, in its application before the NCLT, has said that the lenders are to be blamed for the delay in the implementation of the resolution plan.
11/05/2023 Basudha Das/Business Today
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