NCLT allows Jet Airways ownership transfer to Jalan-Kalrock consortium

The counsel for the lenders Rohan Rajadhyaksha had sought a two-week stay on the order but the plea was rejected by the tribunal.

According to the resolution plan approved in June 2021, the Jalan-Kalrock consortium has so far deposited bank guarantees worth Rs 150 crore with the lenders. The consortium has to make cash payments of Rs 185 crore to financial creditors. A total cash infusion of Rs 1,375 crore, including Rs 475 crore for payment to stakeholders, has been proposed by the consortium. The remaining Rs 900 crore was to be infused for capital expenditure and working capital requirements.

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.

“We thank Jet Airways lenders and all stakeholders for their continued support in our journey, and we look forward to bringing the Joy Back to the Skies!,” Jalan-Kalrock Consortium said in a statement.

The Jalan-Kalrock Consortium had recently written to Ashish Chhawchharia, the resolution professional (RP) and representative of the monitoring committee of Jet Airways, to refrain from communicating on behalf of Jet Airways till authorised by all required members of the committee. JKC was responding to a letter sent by Chhawchharia on December 28, 2022, to CEO-designate Sanjiv Kapoor, asking the airline to refrain from calling Kapoor its CEO.

Chhawchharia’s letter followed another email sent to the RP, seeking clarification over the precise designation of Kapoor.

The airline was originally promoted by Naresh Goyal and had operated its last flight on April 17, 2019.

The Directorate General of Civil Aviation (DGCA), in May 2022, granted Jet the crucial Air Operator Permit (AOP). This was after the airline completed the required set of ‘proving flights’ with key DGCA officials on board. Proving flights involve DGCA-ordered diversions from a flight plan to test an airline’s readiness.

Jet Airways had suspended flights in April 2019.

The airline reported a standalone net loss of Rs 308.24 crore in the three months ended September 2022. The airline had reported a net loss of Rs 305.76 crore in the same period a year ago, according to a regulatory filing.

JKC  had emerged as the winning bidder under the insolvency resolution process that had started in 2019.