Jalan Kalrock Consortium deposits ₹100 crore in Jet Airways
The Jalan Kalrock Consortium (JKC) has deposited ₹100 crore in Jet Airways, less than 48 hours after the National Company Law Appellate Tribunal (NCLAT) allowed the implementation of the revival plans, according to media reports.
With this infusion, JKC has now invested ₹250 crore in Jet Airways and is only required to fund the remaining ₹100 crore by September 30, 2023, to take control of the airline.
The NCLAT had on Monday accepted the plea of the consortium to extend the timeline for payment and also for adjustment of ₹150 crore from performance bank guarantee (PBG) towards the payment of ₹350 crore.
The consortium had submitted an undertaking before the appellate tribunal, in which it had committed to pay ₹100 crore by August 31, 2023 and another ₹100 crore by September 30, 2023.
The lenders had opposed the encashment of the PBG and the extension of the timeline. They had also argued that half of the ₹350 crore will go towards clearing the regulatory dues.
The NCLAT, however, allowed the consortium’s plea and directed it to make the remaining payment of ₹100 crore by September 30, 2023.
Earlier, the lenders had said 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 lenders have filed a plea in the Supreme Court stating that they may wind up the airline if the amount is not paid.
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.
The insolvency resolution proceedings against Jet Airways began in June 2019 and the NCLT approved the resolution plan submitted by the consortium in June 2021. However, the plan is yet to be implemented.
Jet Airways has not flown since April 17, 2019.
Also See: Doubts lenders of Jet Airways have about Kalrock consortium’s revival plans
