Updated March 12th, 2024 at 18:08 IST

NCLAT upholds transfer of Jet Airways ownership to Jalan Kalrock Consortium

The NCLAT's decision allows Jet Airways to resume business operations, subject to regulatory approvals, once ownership is transferred to the SRA.

Reported by: Business Desk
Jet Airways | Image:X
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Jet Airways ownership: The National Company Law Appellate Tribunal (NCLAT) has upheld the resolution plan for Jet Airways, the grounded carrier, and has approved the transfer of its ownership to the Jalan Kalrock Consortium. The decision comes after more than a year of legal disputes between the lenders of Jet Airways and the consortium.

The NCLAT has instructed the Jet Airways monitoring committee to finalise the ownership transfer within 90 days. Additionally, it has directed the lenders to adjust the Rs 150 crore performance bank guarantee paid by the consortium.

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Previously, the lenders had sought intervention from the Supreme Court, which deferred the matter to the NCLAT for resolution.

As part of the directive, the managing committee, led by SBI, has been tasked with creating security on the immovable properties offered by the consortium within 30 days. Upon completion of this security, the lenders are to adjust the performance bank guarantee towards the payment from the successful resolution applicant (SRA).

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Within 30 days of the security creation, the lenders are to issue shares of Jet Airways to the SRA and transfer ownership of the company. Subsequently, all payments to creditors, as outlined in the approved resolution plan, must be completed within 30 days of the handover.

The NCLAT's decision allows Jet Airways to resume business operations, subject to regulatory approvals, once ownership is transferred to the SRA.

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Jet Airways has confirmed that the NCLAT's decision aligns with the original resolution plan without any deviations and has instructed lenders for immediate and specific implementation.

The carrier, which has been grounded since April 2019 due to severe liquidity issues, had announced the completion of an additional Rs 100 crore infusion by the Jalan-Kalrock consortium in September last year. With this infusion, the consortium has fulfilled its total financial commitment of Rs 350 crore equity as per the court-approved resolution plan. The airline aims to relaunch operations in 2024.

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(With PTI inputs) 

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Published March 12th, 2024 at 18:08 IST