Jet Airways' impasse continues, leads to uncertainty in re-launch

The impasse between Jet Airways' lenders and the Jalan-Kalrock consortium continues with both sides approaching courts seeking action. The JKC has moved the NCLT to seek a transfer of ownership of the airline.

However, banking sources tell CNBC-TV18 that ownership transfer will only be possible after JKC makes the first tranche of payment to creditors, fulfills the conditions precedent, and complies with the NCLAT order.

JKC consortium is seeking two things — transfer of the airline's ownership and second, making ownership transfer date as the start of 180-day deadline to pay creditors.

In a separate appeal, lenders have moved the NCLAT urging the tribunal to expunge its observations in an order passed on October 21. The NCLAT had observed that the Jalan-Kalrock consortium has met the conditions precedent committed in the resolution plan.

Lenders have told the tribunal that if this observation is not deleted, it will put the lenders to irreparable harm, loss and injury. The lenders have also clarified to the court that JKC has not met all conditions precedent.

CNBC-TV18 asked banking sources about what lies ahead for the re-launch of Jet Airways on the back of these differences. According to them, the ownership of the airline will only be transferred after JKC makes the first tranche of payment and fulfills all the conditions precedent.

Sources said that lenders have never stopped JKC from infusing funds into the airline but JKC has itself failed to show it has the funds for infusion.

Sources added that JKC wants to use Rs 300 crore received by Jet as rent from Air Serbia and others as working capital. Lenders have opposed their demand as they feel the money belongs to lenders and not JKC.

They want JKC to infuse its own money for working capital. Lenders also say it’s a loss-making situation for them as they also have to pay over Rs 250 crore in airport dues.