Updated: October 18, 2020 12:35:21 am
Eighteen months after Jet Airways (India) Ltd shut down its operations, the lenders of the airline on Saturday approved the resolution plan submitted by UK-based Kalrock Capital and UAE-based entrepreneur Murari Lal Jalan to revive and operate the airline.
The airline, which was grounded on April 17, 2019 due to acute fund crunch under the ownership of founder Naresh Goyal, will now be controlled by Kalrock and Jalan. “The e-voting concluded today, i.e., October 17, 2020 and the resolution plan submitted by Murari Lal Jalan and Florian Fritsch have been duly approved by the CoC (Committee of Creditors) under Section 30(4) of the Code as the successful resolution plan,” Ashish Chhawchharia, the resolution professional appointed by the lenders of the airline said in a stock exchange filing.
“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 NCLT and intimation of the same shall be given to the members as required,” Chhawchharia said.
Another consortium comprising Abu Dhabi’s Imperial Capital Investments, Haryana-based Flight Simulation Technique Centre and Mumbai’s Big Charter was also in the final race for the takeover of Jet Airways.
The airline decided to shut down its operations as the consortium of lenders refused to consider extending Rs 400 crore emergency funding to keep the airline flying. On March 25, 2019, as part of the bailout plan worked out by the lenders, Naresh Goyal and his wife Anita Goyal stepped down from the board. In June 2019, lenders to Jet Airways planned to begin insolvency proceedings against the debt-laden carrier under IBC as only a conditional bid was received.
Jet Airways, once India’s largest airline, was promoted by Naresh Goyal, who held 51 per cent stake, while Abu Dhabi-based Etihad Airways had 24 per cent. Etihad, which was initially interested in taking over Jet then lost interest and offered to sell its entire stake to banks. Etihad invested $379 million in Jet Airways back in 2013 at a price of Rs 754.74 per share.
On Friday, Jet’s scrip rose 4.97 per cent to Rs 40.15 on the BSE.
When Jet Airways collapsed last year, it had a debt of over Rs 8,200 crore and needed to make repayments of up to Rs 1,700 crore by the end of March 2019.
Meanwhile, the amount claimed by creditors of Jet Airways crossed Rs 40,000 crore. As of September 25, the total claims were at Rs 40,259 crore, out of which the company has admitted claims worth Rs 15,525 crore. While financial creditors have claimed Rs 11,345 crore from the defunct airline, operational creditors, including workmen and employees have claimed Rs 27,719 crore. The lenders, other than operational and financial creditors, have claimed Rs 1,117 crore and Dutch administrator has filed claims worth Rs 78 crore.
The new owners
UK-based Kalrock group — a global firm operating in financial advisory and alternative asset management — is backed by Fritsch, an investment group founded by serial entrepreneur Florian Fritsch, who has partnered some of the most influential families and organisations. UAE-based Murari Lal Jalan owns M J Developers, which has investments in diverse sectors like real estate, mining, and construction globally. ENS
📣 The Indian Express is now on Telegram. Click here to join our channel (@indianexpress) and stay updated with the latest headlines
- The Indian Express website has been rated GREEN for its credibility and trustworthiness by Newsguard, a global service that rates news sources for their journalistic standards.