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Jet Airways’ lenders approve Kalrock Capital Consortium’s bid for airline

Jet Airways’ lenders approve Kalrock Capital Consortium’s bid for airline

Jet Airways’ lenders approve Kalrock Capital Consortium’s bid for airline
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By Ritu Singh  Oct 17, 2020 4:31:11 PM IST (Updated)

Jet Airways is facing claims of over Rs 36,090 crores in NCLT, of which Rs 14,640 crores of claims have been admitted by the resolution professional.​

The Committee of Creditors for Jet Airways has approved the resolution plan submitted by the consortium led by London-based financial advisory firm Kalrock Capital to acquire the grounded airline under the Insolvency & Bankruptcy Code (IBC).

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CNBC-TV18 had earlier reported that lenders preferred Kalrock consortium’s offer over the other one submitted by Haryana-based Flight Flight Simulation Technique Centre (FSTC).  Over 99 percent of the members in the Committee of Creditors are expected to have voted in favour of the resolution plan submitted by the Kalrock consortium, said three people familiar with the matter.
The Kalrock Capital consortium includes Murari Lal Jalan, a UAE-based entrepreneur. According to a person directly in the know, Kalrock Consortium’s offer includes a total payout to all creditors of Rs 866 crores. This includes Rs 380 crores payout to the financial creditors, and non-convertible debentures (NCDs) guaranteeing Rs 391 crores of net present value (NPV). This excludes the airport and parking charges, which the consortium will have to bear. Kalrock has also offered equity to equity to lenders in both Jet Airways and Jet Privilege Private Limited (JPPL).
 
Speaking about the development to CNBC-TV18, Kalrock Capital said that it wanted to thank the resolution professional and the committee of creditors of Jet Airways for managing the insolvency process further adding that it is looking forward to engaging the stakeholders of the carrier.
It further revealed its intention of making Jet Airways a full-service airline again. “Have domestic routes in mind where we will initially start operations after taking over Jet Airways… intend to start international operations for Jet Airways in due time,” it added.
The FSTC consortium, led by a former Jet Airways employee called Sanjay Mandavia, Imperial Capital Investments LLC (ICIL), and Big Charter Pvt Ltd (BCPL), on the other hand, had offered a total of Rs 770 crores, and equity to lenders in both Jet Airways and Jet Privilege Private Limited.
The resolution professional of Jet Airways will now place the successful resolution applicant- Kalrock consortium’s bid before the National Company Law Tribunal (NCLT) for the final approval.
Jet Airways is facing claims of over Rs 36,090 crores in NCLT, of which Rs 14,640 crores of claims have been admitted by the resolution professional.​
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