Shares of Jet Airways were locked in a five percent upper circuit at Rs 99.45 on the BSE after the National Company Law Tribunal (NCLT) approved the Kalrock-Jalan consortium's resolution plan for Jet Airways with riders. The tribunal has given 90 days to the Directorate General of Civil Aviation and Aviation Ministry to allot the slots.
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.
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 a 9.5 percent stake in Jet Airways and a 7.5 percent stake in Jet Privilege to the financial creditors.
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.
A two-judge bench of NCLT presided by Janab Mohammed Ajmal and V Nallasenapathy had reserved its order on June 14, after hearing all the parties.
SBI, Yes Bank, PNB, IDBI Bank, and Canara Bank are among the key lenders to Jet Airways.
The airline is facing claims of over Rs 15,525 crore from various creditors under IBC, while 13 domestic banks and financial institutions led by SBI have alone made claims of Rs 5,776 crore.
At 11:25 am, the shares of Jet Airways were trading 4.96 percent higher at Rs 99.45 apiece on the BSE.
First Published: IST