In a crucial development regarding the insolvency proceedings of Jet Airways, the National Company Law Appellate Tribunal (NCLAT) on Monday provided a lifeline to the Jalan Kalrock Consortium, extending the deadline till September 30 for the payment of Rs 350 crore to the lenders of the bankrupt Jet Airways.
A three-member NCLAT bench accepted the plea of the consortium to extend the timeline and also for adjustment of Rs 150 crore from performance bank guarantee (PBG) towards payment of Rs 350 crore.
The consortium, comprised of Jalan and Kalrock Capital, was initially required to make a payment of Rs 350 crore to the Committee of Creditors (COC) by August 31, 2023. However, The consortium has submitted an undertaking before the appellate tribunal, in which it had committed to pay Rs 100 crore by August 31, 2023 and another Rs 100 crore by September 30, 2023.
For the rest Rs 150 crore, the consortium had requested the appellate tribunal to encash the PBG submitted for that purpose.
The Jalan-Kalrock Consortium had emerged as the winning bidder for the grounded airline, Jet Airways, which ceased operations in April 2019 and subsequently underwent an insolvency resolution process. Despite being the chosen resolution applicant, the transfer of ownership has been delayed due to ongoing disputes between lenders and the consortiums.
While the NCLAT's order is yet to be uploaded on its website, this decision arrives after the consortium's plea for an extension of the payment deadline. It is worth noting that the consortium has reiterated its commitment to restarting Jet Airways operations.
Earlier, the consortium was to pay Rs 350 crore to the lenders by August 31 but had sought an extension for making the payment. The NCLAT on last Monday had reserved its order.
While the consortium emerged as the winning bidder under the insolvency resolution process, the ownership transfer has been hanging fire amid continuing differences between lenders and consortiums.
First Published: Aug 28, 2023 8:58 PM IST
