Jet Airways lenders ask JKC to pay Rs 350 cr for transfer of ownership
The Jalan Kalrock Consortium (JKC) has to pay ₹350 crore by August 31 as a condition precedent to the transfer of ownership of Jet Airways. If they do not pay, the lenders may oppose the transfer of ownership. The next hearing is on August 18.
The lenders have filed a plea in the Supreme Court stating that they may wind up the airline if the amount is not paid. They have also infused nearly ₹400 crore of public money into the airline.
The DGCA has extended the air operator certificate of Jet Airways until September 3. However, the airline cannot resume operations until the ownership is transferred to JKC.
JKC has stated that they will do their best to pay the amount by the deadline. They have also urged the tribunal to facilitate the early commencement of operations for Jet Airways.
The future of Jet Airways hangs in the balance. If JKC does not pay the amount, the airline may be wound up. However, if they do pay the amount, the airline could resume operations soon.
The Jalan Kalrock Consortium (JKC) had earlier told the National Company Law Appellate Tribunal (NCLAT) that they are ready to revive Jet Airways, but the lenders are creating obstacles by filing cases in multiple forums.
JKC said they have the Air Operator’s Certificate (AOC) for 2022-23, but they cannot start operations because the lenders have raised objections to their ownership. They also said that if they do not start operations soon, the slots allocated to them will be reassigned to others.
The consortium comprises UAE-based non-resident Indian Murari Lal Jalan, who will hold shares in Jet Airways in his personal capacity, and Florian Fritsch who will hold shares via his investment holding company Kalrock Capital Partners Ltd, Cayman.
The airline stopped flying in April 2019 after running into financial difficulties. However, ownership transfer has been hanging fire amid continuing differences between the lenders and the consortium.
Before the suspension of its operations in April 2019, Jet Airways flew to more than 65 domestic as well as international destinations with a fleet of 124 narrow and wide-body aircraft.
Also See: Doubts lenders of Jet Airways have about Kalrock consortium’s revival plans
