Lenders move Supreme Court seeking liquidation of Jet Airways
Frustrated with the delays in the airline’s revival, lenders of Jet Airways have moved the Supreme Court seeking liquidation of the airlines. The lenders are not keen on Jet Airways’ liquidation, but they have no choice if the Successful Resolution Applicant – Jalan-Kalrock Consortium (JKC) — does not pay any money.
The lenders have incurred costs of up to Rs 386 crore so far in the resolution process, excluding airport dues. However, instead of paying the lenders, JKC has been delaying the airline’s revival by seeking extensions from different tribunals.
JKC has denied the lenders’ claims and has accused the lenders of delaying the implementation of the resolution plan. The consortium has said that it can only infuse funds once all prerequisite steps are completed, including confirmation of the effective date, getting necessary approvals, and making the company fully compliant.
The Supreme Court has categorically stated that the resolution plan needs to be implemented and there is no question of liquidation. The lenders were pressing for a stay on the implementation of the resolution plan, but their interim prayer was rejected.
JKC was supposed to pay the first tranche to lenders before May 15, but it got an extension from the NCLT till August 30. The airline has not managed to renew its Air Operator’s Certificate (AOC) as it does not have the required manpower and fleet to prove its operational capability to the DGCA.
JKC has alleged that it could not renew the AOC due to the delays by the lenders. The resolution plan was passed after being approved by the Committee of Creditors, but with lenders now losing faith, the revival of Jet Airways looks quite uncertain.
In summary, the lenders are frustrated with the delays in the revival of Jet Airways and are considering liquidation if JKC does not pay any money. JKC has denied the lenders’ claims and has accused the lenders of delaying the implementation of the resolution plan. The Supreme Court has categorically stated that the resolution plan needs to be implemented and there is no question of liquidation. However, with lenders now losing faith, the revival of Jet Airways looks quite uncertain.
Also Read: Jalan-Kalrock consortium gets 108 more days to infuse capital into Jet Airways
