Jet Airways aircrafts' prospective buyer hails NCLAT order refusing to restrain sale

Prospective buyer hails NCLAT order

Malta-based Challenge Group, which had successfully bid through its special purpose vehicle Ace Aviation for three B777-300 aircraft of the grounded Jet Airways hailed the order of National Company Law Appellate Tribunal (NCLAT) refusing to restrain the sale process.

Eshel Heffetz, CEO of The Challenges Airlines said "We're pleased with the NCLAT's decision to allow the sale of Jet Airways aircraft to Ace Aviation. Our confidence in the court process remains steadfast, and we believe that it will facilitate the completion of the sale."

Heffetz urged all the parties involved to adopt a pragmatic approach and expedite the sale in a smooth and timely manner, adhering to aviation and market standards.

The aircraft are expected to be sold for Rs. 400 crore to a Malta-based company called Ace aviation. The company claims to have deposited Rs 50 crore already.

Earlier on December 22, the NCLAT refused to entertain a plea by Jalan Kalrock Consortium, the successful resolution applicant of Jet Airways against an order permitting the sale of Jet Airways' aircrafts. 

In September 2023, the company had told Moneycontrol that that delays in the sale of the aircraft may force it to look at other options. Heffetz had said that Challenge Airline has plans to convert Jet Airways' three B777-300 aircraft into freighters starting in 2025 and 2026 and delays in the sale of the aircraft will only make the aircraft more expensive.

The sale of three Jet Airways aircraft was stalled in November 2022 due to disagreements among the members of the airline’s monitoring committee, the seven-member panel constituted by lenders to manage its day-to-day affairs. Apart from creditors, the committee comprises the Jalan Kalrock consortium that had been declared the winner in the bidding for the bankrupt airline.

Ace Aviation had initially moved the NCLAT in August against an interim order passed by the Mumbai National Company Law Tribunal (NCLT) in July, suggesting that either allowing or restraining the sale of the aircraft would lead to a reopening of the approved resolution plan.

However, NCLT eventually passed an order asking the monitoring committee to proceed with the sale whilst asking the sale proceeds to be deposited in an escrow account.