homeaviation NewsJalan Kalrock set to get Jet Airways' ownership, lenders unlikely to challenge NCLAT order
Jalan-Kalrock set to get Jet Airways' ownership, lenders unlikely to challenge NCLAT order
The consortium is willing to allow banks to use the aircraft rental proceeds of around Rs 130 crore.
Jalan-Kalrock consortium is all set to take ownership of Jet Airways, as lenders are unlikely to challenge the National Company Law Appellate Tribunal (NCLAT) order that refused to stay the transfer of ownership, according to sources on Friday.
The NCLAT decision has bolstered Jalan-Kalrock's position in this tussle. As per reports, back-channel talks are currently underway between Jet's lenders and Jalan-Kalrock consortium to speed up the transfer process.
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JKC is likely to comply with the Supreme Court's order on provident fund (PF) and gratuity payments, which comes to approximately Rs 250 crore. The consortium is also willing to allow banks to use the aircraft rental proceeds of around Rs 130 crore.
JKC will require SEBI's approval to receive payments from foreign sources.
According to sources, the consortium is likely to pay the first tranche of Rs 185 crore to creditors within two months of receiving SEBI's approval.
The airline's monitoring committee is expected to meet next week to give the go-ahead to the consortium. JKC is also likely to give an undertaking to banks assuring that it will make remaining payments irrespective of getting airport slots and traffic rights.
Jalan-Kalrock's resolution plan promises to pay Rs 380 crore to lenders, but the CEO-designate Sanjiv Kapoor has declined to comment on the matter. The consortium is yet to respond to CNBC-TV18's query.
It is to be noted that both members of the consortium are based out of India and will need the market regulator's nod to receive money from foreign sources.
Jet Airways shut down in April 2019 over piling losses and a debt of about Rs 8,000 crore. A consortium of London-based Kalrock Capital and UAE-based entrepreneur Murari Lal Jalan emerged as successful bidders in the Jet Airways insolvency resolution process.
(Edited by : Anand Singha)
First Published: Mar 3, 2023 5:08 PM IST
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