Jet Airways Set for 2024 Relaunch as JK Consortium Delivers Funds

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The Jalan Kalrock Consortium (JKC), the entity chosen to resolve the issues surrounding Jet Airways, has successfully injected an additional Rs 100 crores into the defunct airline, completing its financial commitment of Rs 350 crore ($42.1 million) in equity as stipulated by the court-approved resolution plan. This development signifies JKC's readiness to assume control of the iconic airline, according to an official statement released by the company.

The consortium remains steadfast in its strategy to revive the airline, with a goal of restoring its operations by 2024. Further details concerning the relaunch of Jet Airways will be disclosed in the coming weeks.

On August 28, the National Company Law Appellate Tribunal (NCLAT) granted an extension to Jalan Kalrock Consortium, the successful resolution applicant for Jet Airways, allowing them until September 30 to fulfill the Rs 350 crore payment to their lenders. To meet this obligation, JKC was permitted to utilize Rs 150 crore from their performance bank guarantee. Creditors initially opposed this move, arguing that the bank guarantee should serve as a backup and not be used at this stage. The matter is set for further deliberation on October 4.

JKC had requested an extension for a payment due on August 31 and was instructed by NCLAT to submit an updated payment schedule. During previous hearings, JKC's legal representative, Ravishankar Prasad, assured the tribunal that the consortium would deposit Rs 100 crore by August 31 and another Rs 100 crore by the end of September.

Creditors of Jet Airways maintain that JKC has not met the condition precedents mandated by the NCLT's order and argue that JKC has not infused sufficient funds to fulfill their financial obligations. Conversely, JKC contends that creditors must initiate the process of transferring ownership of the airline to facilitate fund transfers.

In parallel, the airline's creditors have also sought the intervention of the Supreme Court in response to NCLAT's May order permitting an extension for JKC to meet the condition precedents. On July 10, these creditors urged the Supreme Court to wind up the airline, asserting that the NCLT-approved resolution plan was unworkable.

Back on January 13, NCLT had granted approval for the troubled airline's transfer to the consortium led by Kalrock Capital in London and entrepreneur Murari Lal Jalan in the UAE. However, the Committee of Creditors (CoC) contested this transfer, leading to a legal dispute.

Jet Airways ceased operations in April 2019 due to mounting losses and a debt burden of approximately Rs 8,000 crore. In October 2020, the CoC greenlit the revival plan presented by the Jalan-Kalrock consortium.