Jet Airways Flight Delay: Updates on Current Situation

Jalan Kalrock Consortium (JKC) made a successful bid for Jet Airways. He asked the Committee of Creditors (CoC) to pay Rs. 350 crore has sought more time to pay. He has filed a petition in the National Company Law Appellate Tribunal (NCLAT). In this he has said that the CoC had asked to pay this money by August 31. But, it needs some more time for payment.

Jalan-Kalrok Consortium (JKC), the successful bidder of bankrupt Jet Airways, on Friday offered the airline’s lenders Rs. 350 crore sought more time from the National Company Law Appellate Tribunal (NCLAT).

The payment date was initially August 31, but now JKC has sought an extension. The Appellate Tribunal has asked JKC to apply for revision of payment.

Sr. Appeared Before the JKC

Advocate Ravi Shankar Prasad said that by August 21, the consortium had paid Rs. 100 crore and by the end of September Rs. 100 crore will be deposited and Rs. 150 crore bank guarantee has already been given, which can be used by the lenders.

JKC has also informed the tribunal that it is determined to restore the airline’s operations. On the other hand, Additional Advocate General N Venkataraman appearing for the lenders (which includes SBI) argued that Rs. 350 crore payment is the first step towards payment of dues.

He said that after the first payment, three other payments will also be made to the lenders. The last step is transfer of equity shares.

Disagreeing with JKC’s contention, Venkataraman said that Rs. 150 crore bank guarantee to him Rs. 350 crore cannot be said to be part of the payment as it was used for another part of the resolution plan. The NCLAT had on May 26 given JKC 107 days to repay the lenders.

“SRA (successful bidder i.e. JKC) is ready and willing to make the first payment of Rs 175 crore and SRA will invest Rs 50 crore within 30 days,” the order said.

The tribunal said that at present (107 days, till August 30) Bank Guarantee of Rs 150 crore should not be taken by State Bank of India.

The NCLT Approved the Transfer of Ownership on January 13

A committee of creditors is formed when the company becomes part of the bankruptcy process. This committee consists of financial creditors, who represent the interests of the stakeholders.