Jalan Kalrock consortium (JKC) has alleged that the lenders of Jet Airways are using a Supreme Court petition as a tactic to delay the handover of the airline to the consortium, a news report said on October 11.
Lenders of the grounded airline Jet Airways stated in their filing in the SC on October 9 that the airline's Successful Resolution Applicant (SRA) Jalan Kalrock Consortium has no intention to implement the National Company Law Tribunal (NCLT)-approved resolution plan.
According to lenders, the financial package offered by SRA in the Resolution Plan is Rs 4,783 crore, which is payable in tranches in 5 years, but the appellants, at present, are struggling to get even an amount of Rs 350 crore towards the first tranche payment, even after 2 years of the approval of the resolution plan. The lenders' SC filing further alleged that Florian Fritsch, JKC 's foreign partner has never come forward or even met the lenders at any stage though requested.
According to the report in Business Line, JKC, in reply to the lenders' Supreme Court filing which asserted that JKC's foreign partner Florian Fritsch never interacted with the lenders despite their requests, pointed out that media has been reporting on the investigation regarding Florian since 2022, and questioned as to why the lenders have not expressed their concerns about these legal disputes before accepting funds.
"The investigation relating to Florian was in the media since 2022. If lenders have concerns about these litigations and his credentials, why did they not take a stand on it before receiving funds. It is clearly evident to all courts that this is an afterthought of the lenders only to delay the handover of the company to JKC,” Business Line reported quoting Jalan Kalrock consortium as saying.
“Fresh section 29A compliance affidavit for all entities were submitted to lenders on 28th September and 3rd October. The same was informed by resolution professional counsel in National Company Law Tribunal (NCLT) yesterday. The NCLT has now directed them to file an affidavit in this regard so nothing is pending in this regard,” the report also added quoting the consortium.
Lenders Vs JKC
Jet Airways' lenders are fighting against JKC at NCLT Mumbai, NCLAT and the Supreme Court on various issues.
The latest case filed by the lenders at the SC challenges an NCLAT order, which permitted JKC time to September 30 to make Rs 350 crore payment to the lenders. SC is set to hear this case on October 12.
On October 4, the lenders questioned the source of the Rs 200 crore JKC deposited during a hearing at NCLAT. NCLAT is expected to hear the case on October 12.
In May 2023, the NCLAT granted Jalan Kalrock Consortium, which emerged as a successful bidder to take over Jet Airways, more time to make payments to the State Bank of India (SBI).
On January 13, NCLT allowed the transfer of the beleaguered airline to the consortium led by London-based Kalrock Capital and UAE-based entrepreneur Murari Lal Jalan.
Jet Airways was grounded in April 2019 over growing losses and a debt of about Rs 8,000 crore. In October 2020, the airline's Committee of Creditors approved the revival plan submitted by the Jalan-Kalrock consortium.
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