Jalan Kalrock Consortium commits Rs 100 crore to secure Jet Airways control

Jet Airways was grounded in April 2019 over growing losses and a debt of about Rs 8,000 crore.

Jalan Kalrock Consortium, the successful bidder for financially challenged Jet Airways, stated in a press release issued on August 31 that it has deposited Rs 100 crore into the airline. This action follows the National Company Law Appellate Tribunal's (NCLAT) directive permitting the execution of the revival strategy.

With this recent contribution, JKC's total investment in Jet Airways has reached Rs 250 crore, the consortium noted. The consortium's commitment now revolves around providing the remaining Rs 100 crore by September 30 to take control of the airline.

On August 28, the NCLAT granted an extension of time to Jet Airways' successful resolution applicant, the Jalan Kalrock Consortium, to make a payment of Rs 350 crore to its lenders.

JKC expressed gratitude to stakeholders for their unwavering support and expressed confidence in the triumphant revival of Jet Airways.

On August 21, JKC informed the court of its intention to deposit Rs 100 crore by August 31 and another Rs 100 crore by September 30. The consortium urged the Committee of Creditors (CoC) to encash a performance bank guarantee (PBG) of Rs 150 crore towards the remaining amount. However, the CoC of Jet Airways argued that the performance bank guarantee was a backup and could not be utilized at this stage. The case is scheduled for further consideration on October 4.

A committee of creditors is formed once a company is admitted to insolvency. It is a body of financial creditors representing the interests of stakeholders. The voting percentage on the panel is proportional to the amount a financial institution has lent to the company in insolvency.

On January 13, the NCLT allowed the transfer of the beleaguered airline to the consortium led by London-based Kalrock Capital and UAE-based entrepreneur Murari Lal Jalan. However, the CoC took the matter to the NCLAT, opposing the transfer.

Jet Airways was grounded in April 2019 due to mounting losses and a debt of about Rs 8,000 crore. In October 2020, the airline's CoC approved the revival plan submitted by the Jalan-Kalrock consortium.