Categories: Travel

NCLAT directs swift transfer ownership to Jalan Kalrock Consortium, ET TravelWorld

Jet Airways aircraft.

In a decisive move towards the revival of Jet Airways, the National Company Law Appellate Tribunal (NCLAT) has mandated the expeditious transfer of the airline’s ownership to the Jalan Kalrock Consortium (JKC) within a strict timeline of 90 days. Additionally, the tribunal has instructed JKC to secure an air operator’s certificate within the same timeframe, marking a pivotal step in the airline’s journey back to the skies.

Furthermore, the tribunal has greenlit the adjustment of the Performance Bank Guarantee (PBG) of INR 150 crore towards the initial tranche payment of INR 350 crore. “The PBG of Rs 150 Crore which is laying with the monitoring committee shall be adjusted towards the first tranche payment of Rs 350 crore as Rs 200 crore has already been paid by the SRA,” stated the appellate tribunal.

Last year, JKC had deposited INR 200 crore in two installments by September, signaling its commitment to the revival process. However, lenders raised concerns over JKC’s compliance with the resolution plan’s conditions, spanning from settling airport dues to fulfilling the first tranche payment.

In response to the tribunal’s directives, Jet Airways released a statement confirming NCLAT’s approval of the resolution plan’s implementation without deviations. The airline highlighted that NCLAT’s decision entails specific and immediate action from lenders, emphasizing that no relief has been granted to them.

Barathan Pasupathi brings a wealth of expertise to his new role, having served as the former CFO of Jazeera Airways and played a crucial role in the establishment of Sahaab Aircraft Leasing. With extensive experience spanning aviation, oil and gas, and supply chain management, Bara is well-positioned to lead Jazeera Airways into its next phase of growth and development.

Per the directives, lenders are tasked with creating security on immovable properties offered by the State Revival Advisor (SRA) within 30 days. Once the security is established, lenders are mandated to adjust the performance bank guarantee of Rs 150 crores towards the payment from SRA. Within the same timeframe, lenders are required to issue shares of Jet Airways to SRA and facilitate the company’s handover.Upon the completion of the handover process within 30 days, SRA and lenders are obligated to fulfill all payments to creditors as per the approved resolution plan. Jet Airways will be poised to recommence business operations, subject to regulatory approvals, following its handover to SRA. This development marks a significant stride forward in Jet Airways’ path to resurgence, instilling optimism among stakeholders eager to witness the iconic airline’s revival.

Jet Airways, was grounded in 2019 amid mounting financial vows.