Jet Airways Set for 2024 Relaunch as JK Consortium Delivers Funds
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.