Monday, July 10, 2023

Wind up Jet Airways, resolution plan not working, creditors tell SC

Jet Airways creditors have called for the grounded airline to be wound up, telling the Supreme Court on July 10 that the resolution plan approved by the National Company Law Tribunal (NCLT) was not workable.

Appearing for the Committee of Creditors (CoC), additional solicitor general N Venkatraman told the apex court that Jalan Kalrock Consortium, which was given the ownership of the airline, had not infused any funds into the company.

The Director General of Civil Aviation was not ready to renew the airline's Air Operator's Certificate, which expired in May, he said.

The consortium had not met its funds infusion target but was getting repeated extensions from tribunals. The company would have to go into liquidation if CoC were to recover any of its dues, Venkatraman said.

The Jalan Kalrock Consortium in a response to questions sent by Moneycontrol said that it’s “resolution plan provides for fund infusion to start only after the Effective Date and due to the challenges made on the effective date there have been delays in implementing the resolution plan.”

“JKC shall not do anything or has done which is contrary to the NCLT approved resolution plan and is fully committed in reviving Jet Airways,” the association said in a statement.

It added that it has “invested approximately Rs 300 crore in the entire process which also includes Rs 20 Crores in Jet Airways directly till date.”

Seeking Jalan Kalrock's response, the court has listed the next hearing in two weeks.

10/07/2023 SN Thyagarajan/Moneycontrol

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