Thursday, August 31, 2023

Hopes of Jet Airways comeback soar after Jalan-Kalrock Consortium deposits Rs 100 crore with lenders

Following the National Company Law Appellate Tribunal (NCLAT) August 28 extension granting Jalan-Kalrock Consortium (JKC) – the winning consortium for the revival of Jet Airways – time till September 30 to pay Rs 350 crore to lenders, it has deposited Rs 100 crore as payment to lenders.

“JKC confirms to have deposited Rs 100 Crores in Jet Airways in less than 48 hours of the NCLAT allowing implementation of revival plans,” the consortium said in a statement released late Thursday evening.

“With this infusion, JKC has now invested Rs 250 crores in Jet Airways and now is only required to fund the remaining Rs 100 crores in Jet Airways by September 30, 2023, to take control of the iconic airline, Jet Airways,” the statement added.

The consortium had earlier deposited a performance bank guarantee of Rs 150 crore towards Jet Airways’ revival. In its order, the apex appellate tribunal has permitted adjusting the bank guarantee against the total payment.

The airline’s lenders called the Committee of Creditors (CoC) had approved the resolution plan jointly submitted by Dubai-based businessmen Murari Lal Jalan and German serial entrepreneur Florian Fritsch in October 2020. But what was supposed to be a major test of the country’s Insolvency and Bankruptcy Code (IBC), 2016, instead turned into an acrimonious legal battle between the consortium and the CoC over the infusion of funds.

Having deposited the performance bank guarantee with the lenders, JKC had maintained that any further infusion would be possible only after the transfer of ownership of the airline.

However, the Supreme Court’s July order to implement a resolution plan excluding liquidation has brought new hope for the beleaguered project.

31/08/2023 Manish Pant/Business Today

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