Kalrock Capital says raids on Florian Fritsch won’t impact Jet Airways acquisition

Asset manager Kalrock Capital Partners confirmed on Monday that properties linked to its promoter Florian Fritsch would have no impact on the acquisition of Jet Airways. Kalrock Capital has confirmed that regulatory agencies were investigating its promoter entity’s properties in Liechtenstein, Switzerland and Austria. The probes are based on anonymous complaints filed concerning certain businesses where Fritsch is a financial investor in his personal capacity, UK-based Kalrock said in a statement.

Fritsch said that neither Kalrock Capital nor Jet Airways have any connection with ongoing investigations, which it said were commercial in nature.

The development comes amid reports that the relaunch of Jet Airways is likely to be delayed as the Jalan-Kalrock consortium is yet to fulfil its payment obligations.

There are two deadlines that the Jalan-Kalrock consortium has to meet, and as things stand, it looks to be in danger of missing both.

First, the consortium has to pay Rs 52 crore to workmen and employees of the erstwhile airline by the end of business on November 11. Sources earlier told CNBC-TV18 that this payment had not been made as yet. The second deadline is the payment of Rs 185 crore to various lenders. The consortium has till November 16 to make this payment, which has also not been made so far.

Jet Airways stopped operations in April 2019 after running out of cash. In October 2020, the National Company Law Tribunal (NCLT) approved a resolution plan submitted by a consortium of Kalrock and UAE-based businessman Murari Lal Jalan.

The consortium will get ownership of the airline only after the first tranche of payments to lenders is made. So, if the consortium does not get a transfer of ownership, it cannot lease aircraft in the name of Jet Airways.

Almost 17 months since the resolution plan was approved, ownership of Jet Airways has not been transferred to the buyer — the Jalan-Kalrock Consortium.

Any delays will mean Jet’s quick return to Indian skies is jeopardised. The consortium has already extended the relaunch target multiple times, with the last target of October being overshot.