London-based Kalrock Capital has contested reports suggesting it has won the bid for the bankrupt Jet Airways, and said that lenders are yet to reach a conclusion on the matter.
In a statement issued to CNBC-TV18 on behalf of the Kalrock Capital-Murari Lal Jalan consortium, Kalrock Capital said, "The Jalan Kalrock Consortium has not made any comment on the ongoing resolution process of Jet Airways and/or regarding its submitted resolution plan for Jet Airways (India) Ltd and fully respects the current process as the lenders are still deliberating on the matter and have not reached a conclusion yet."
The comment comes amidst reports quoting Kalrock Capital’s managing partner Igor Starha saying the consortium was chosen by the Committee of Creditors for Jet Airways.
“Kalrock Capital and/or The Jalan Kalrock Consortium has not made any comments concerning its resolution plan for Jet Airways (India) Ltd (under CIRP) and shall not be making any public comments until an official response is received from the Resolution Professional,” it added in its statement to CNBC-TV18.
Jet Airways informed exchanges last week that the final resolution plans submitted by two resolution applicants were put for e-voting for approval by the creditors' committee. The two shortlisted resolution applicants include a consortium of financial advisory firm Kalrock Capital and Murari Lal Jalan, a UAE-based entrepreneur, and another consortium led by Sanjay Mandavia’s Flight Simulation Technique Centre (FSTC).
Ashish Chhawchharia, the resolution professional for Jet Airways told CNBC-TV18, “The voting process for Jet is still underway, and will go on till October 16. No winning bidder has been declared yet.”
According to a person directly in the know, Kalrock consortium’s offer includes a total payout to all creditors of Rs 866 crore. This includes Rs 380 crore payout to the financial creditors, and non-convertible debentures (NCDs) guaranteeing Rs 391 crore of net present value (NPV). This excludes the airport and parking charges, which the consortium will have to bear if selected. Kalrock has also offered equity to lenders in both Jet Airways and Jet Privilege Private Limited (JPPL).
FSTC consortium’s offer is pegged at approximately Rs 770 crore in total, and also includes equity for lenders in both the airline and JPPL, added this person.
A senior executive of a bank with significant exposure to the airline told CNBC-TV18 on the condition of anonymity that the CoC is leaning towards picking the bid made by the Kalrock Capital consortium, but the process is yet to conclude so the results are not known yet.
The winning bidder requires at least 66 percent of the total votes to win the resolution. In the event that neither of the two players gets the requisite votes, the airline would have to be liquidated, added this person. Lenders are keen to pick one of the two applicants' plans and avoid liquidation which will result in more job losses, said the executive.
Jet Airways is facing claims of over Rs 36,090 crore in NCLT, of which Rs 14,640 crore of claims have been admitted by the resolution professional.