Jalan-Kalrock Consortium completes Rs 350-cr infusion; fulfils condition to take control of Jet Airways
The new owners of Jet Airways, Jalan-Kalrock Consortium (JKC), has completed an additional payment of Rs 100 crore, bringing their total infusion in the airline to Rs 350 crore, a prerequisite for the new owners to get the control of the Jet Airways.
In a press statement, the consortium said that with this infusion, JKC has fulfilled its total financial commitment of Rs 350 crore ($42.1 million) equity as per the court-approved resolution plan, and all commitments by JKC now stand fulfilled to take control of the iconic airline.
“The consortium’s strategy to revive the airline remains unaltered. The new promoters are determined to re-establish the operations of the airline up and running in 2024. Further announcements regarding the launch date of Jet Airways will now be made in the coming weeks,” the release added.
Jalan-Kalrock Consortium had on 1 September 2023 made the payment of Rs 100 crore taking the total infusion to Rs 250 crore after including the Rs 150 crore given as bank guarantee. With the latest round, the total infusion reaches Rs 350 crore in the airlines.
The consortium had submitted an undertaking before the National Company Law 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.
JKC plans to restart Jet Airways in 2024. The company is still working on the details of the revival plan, but it is expected that the airline will start with a small fleet of aircraft and gradually expand its operations.
The revival of Jet Airways is a positive development for the Indian aviation industry. Jet Airways was once one of the leading airlines in India, and its return will increase competition and provide more options for travelers.
Also See: Jalan Kalrock Consortium deposits ₹100 crore in Jet Airways
