Monday, August 21, 2023

Jet Airways’ lenders agree to give Jalan Kalrock Consortium extension till Sep 30 to make payments

The committee of creditors (CoC) of bankrupt airline Jet Airways on Monday agreed to give an extension to the payment deadline to the Jalan Kalrock Consortium till September 30, but differed on the mode.

The JKC sought a one-month extension for payment. However, the National Company Law Appellate Tribunal (NCLAT) wanted the consortium to satisfy how the bank guarantee of Rs 150 crore can be used as security.

"How do we reach the end of the tunnel of Rs 7,000 crore payment, if we are struggling to recover Rs 350 crore," the CoC argued.

The bench wanted the JKC senior counsel to satisfy if the performance bank guarantee could be used as a security for the Rs 350 crore to be deposited by August 31. NCLAT order on the extension and performancebank guarantee issue is reserved for August 28.

The JKC senior counsel, in his arguments, noted that the consortium was serious about operating the airline but questioned the lenders’ seriousness of the matter.

“This is not a fair attitude from a public authority,” the senior counsel for JKC stated, implying that the CoC was leaning towards liquidation.

The counsel cited the resolution plan approved by the tribunal to indicate that the performance bank guarantee of Rs 150 crore, which was earlier of Rs 47.5 crore, could be adjusted in lieu of security.

21/08/2023 Economic Times

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