NCLT allows transfer of Jet Airways ownership to Jalan Kalrock consortium

The National Company Law Tribunal has allowed the transfer of ownership of Jet Airways to winning bidder Jalan-Kalrock consortium.

The order was pronounced by the Mumbai bench of the tribunal on Friday. The effective date of the resolution plan has been taken as 16 November.

As a result, the consortium will get six months from the said date to make payments to lenders.

The counsel for lenders had sought a two-week stay on the order, but was declined.

So far, the Jalan-Kalrock consortium has deposited bank guarantees worth ₹150 crore with the lenders.

As per the resolution plan, the consortium has to make cash payments of ₹185 crore to financial creditors within 180 days from the effective date.

The consortium had also proposed a total cash infusion of ₹1,375 crore, including ₹475 crore for payment to stakeholders from this.

The remaining ₹900 crore was to be infused for capital expenditure and working capital requirements.

At ₹380 crore, the lenders took a steep haircut on their admitted claims of over ₹7,807.7 crore under the approved resolution plan.

On 22 June 2021, the tribunal in its order had approved the resolution plan submitted by the Jalan-Kalrock consortium subject to necessary approvals.

The consortium comprises UAE-based non-resident Indian Murari Lal Jalan, who will hold shares in Jet Airways in his personal capacity, and Florian Fritsch who will hold shares through his investment holding company Kalrock Capital Partners Ltd, Cayman.