Jet Airways revival: Grounded airline’s lenders approve Kalrock Capital-Jalan resolution plan

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The Naresh Goyal founded Jet Airways stopped its operations in April last year due to acute liquidity crunch

The revival chances of the grounded Jet Airways received a fresh life as the committee of creditors on Saturday approved the resolution plan submitted by UK-based Kalrock Capital and UAE-based entrepreneur Murari Lal Jalan.

The resolution professional appointed by the lenders of the airline, Ashish Chhawchharia, said that the lenders approved the resolution plan submitted by Jalan and Florian Fritsch.

"The e-voting concluded today, i.e., October 17, 2020 and the resolution plan submitted by Mr Murarilal Jalan, and Mr Florian Fritsch have been duly approved by the CoC (Committee of Creditors) under Section 30(4) of the Code as the successful resolution plan," Chhawchharia said in a stock exchange notification.

The Resolution Professional is in the process of filing an application in accordance with Section 30(6) of the Code for approval of the said resolution plan by the National Company Law Tribunal (NCLT) and intimation of the same shall be given to the members as required, Chhawchharia added.

The Naresh Goyal founded Jet Airways stopped its operations in April last year due to acute liquidity crunch.

In July this year, a bid was received from the consortium of Kalrock Capital and Jalan.

The new owner will have to face several challenges including massive debt, dues to employees, airports, ground handlers and others while taking over Jet Airways. The oldest private airline of India has a debt pileup of an estimated Rs 8,500 crore on its books with total liabilities of around Rs 25,000 crore.

Several efforts were made to revive the airline and several investors had come forward in the past over one year to take over Jet Airways. However, all of them withdrew from the bid anticipating issues including financial and legal.

Image credit: Hans India

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