A two-member bench of the National Company Law Tribunal (NCLT) is set to pronounce its final ruling on the Kalrock Capital and Murari Lal Jalan consortium resolution plan for Jet Airways this morning. The Mumbai bench of NCLT has listed the matter for final orders at 10.30 am today.
The two-judge bench presided by Janab Mohammed Ajmal and V Nallasenapathy had reserved its order on June 14, after hearing all the parties.
Jet Airways, India’s oldest and once largest private airline, was grounded in April 2019 after a severe scarcity of funds, following which an SBI-led consortium referred it to the NCLT for resolution under the insolvency and bankruptcy code. After several rounds of bidding, the lenders of Jet Airways finally zeroed in on the Kalrock-Jalan consortium in October of 2020.
Kalrock Capital is a UK-based asset management company and Murari Lal Jalan is a little-known entrepreneur based in the UAE. Neither has any prior experience in the aviation sector.
The Kalrock-Jalan consortium is understood to have offered Rs 1,183 crore of repayment over a period of five years to the financial creditors, employees and workmen of Jet Airways. It has also offered about 9.5 percent stake in Jet Airways, and 7.5 percent stake in Jet Privilege to the financial creditors, it is understood. The airline is facing claims of over Rs 15,525 crore from various creditors under IBC, while the 13 domestic banks and financial institutions led by SBI have alone made claims of Rs 5776 crore.
SBI, Yes Bank, PNB, IDBI Bank and Canara Bank are among key lenders to Jet Airways.
In an interview with CNBC-TV18 earlier, Murari Lal Jalan had claimed that the consortium intends to get Jet back in the skies within four to six months of getting the approval from NCLT. He also claimed that the Ministry of Civil Aviation had assured the bidders that slots would be made available for Jet Airways when it resumes operations. However, there is still no clarity on this front.
The consortium is believed to still be in talks with the government regarding these slots. Jet has an existing fleet of 11 aircraft comprising of B777, B737 and A330s.
As per the resolution plan approved by lenders, the Kalrock-Jalan consortium has proposed to take the fleet size to 120 within 5 years, and have a mix of domestic, international and cargo operations.
First Published: IST