Aviation News

Jet Airways’ CoC asks Jalan Kalrock Consortium to pay Rs 350 crore, ET Infra


The Committee of Creditors (CoC) of Jet Airways on Monday asked the Jalan Kalrock Consortium to pay Rs 350 crore. The CoC said that they may not pursue the appeal for transfer of ownership if the said amount is paid.

Late in July, the Jalan-Kalrock consortium sought clarity from the National Company Law Appellate Tribunal on the transfer of ownership of the grounded airline, claiming that the creditors were creating hindrances to restart operations.

The counsel for State Bank of India(SBI), one of the lenders of Jet Airways, on the other hand, said the consortium had not infused any funds in the airline and had not complied with any of the conditions laid down by the National Company Law Tribunal order for the transfer of ownership.

JKC in July announced the appointment of Jatinderpal Singh Dhillon as the airline’s accountable manager. Further, two whole-time directors and a non-executive director were also appointed.

Aviation safety regulator DGCA has renewed with conditions the Air Operator Certificate (AOC) of Jet Airways until September 3.

Jet Airways, which has not flown since April 17, 2019 due to financial crunch, went through lengthy insolvency proceedings and JKC emerged as the winning bidder.

The AOC was re-issued on May 20, 2022. However, since the airline did not start operations, it expired on May 19 this year.

However, the transfer of ownership to JKC is yet to happen amid persisting differences with the airline’s lenders.

In October 2020, the airline’s Committee of Creditors (CoC) approved the revival plan submitted by the consortium of Dubai-based Murari Lal Jalan and the UK’s Kalrock Capital.

In June 2021, JKC’s bid was approved under the insolvency resolution process. However, the implementation of the plan is getting delayed.

The consortium had appointed Sanjiv Kapoor as its interim-CEO in April 2022, who quit the carrier in April this year.

(With agency inputs)

  • Published On Aug 7, 2023 at 05:23 PM IST

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