Jalan Kalrock Consortium (JKC), the successful bidder for the revival of Jet Airways, has requested an extension for the payment of Rs 350 crore to the Committee of Creditors (CoC).
The consortium has filed an application with the National Company Law Appellate Tribunal (NCLAT) citing the need for additional time to fulfill the payment requirement.
The CoC had initially set a deadline of August 31 for this payment.
Timeline Extension Requested Amid Payment Hurdles
NCLAT has scheduled August 21 as the next hearing date for the matter. During the hearing on August 18, senior advocate Ravi Shankar Prasad presented JKC’s stance in the tribunal.
According to the consortium, it is willing to pay Rs 100 crore by August 31 and the remaining Rs 250 crore by September 30.
This payment is backed by a bank guarantee that can be encashed for the full amount of Rs 350 crore.
Ownership Transfer Pending on Payment Completion
The transfer of equity shares in Jet Airways will only proceed after the successful payment of the stipulated Rs 350 crore.
Additional Solicitor General N Venkaraman, representing the CoC, emphasized that the payment is a crucial step in the share transfer process, while also highlighting other requirements that JKC must fulfill for the transfer to take place.
Employees Await Dues Amid Ownership Transition
Employees of Jet Airways have asserted that the consortium is obligated to settle their pending dues. The matter is slated to be heard again on August 31.
The CoC had previously mentioned its willingness to drop its appeal against the share transfer to JKC if the stipulated payment of Rs 350 crore is fulfilled.
Background of Ownership Transfer Battle
The ownership transfer of Jet Airways to Jalan Kalrock Consortium was granted approval by the NCLT on January 13.
However, the CoC contested this transfer, leading to subsequent legal proceedings.
The consortium, comprised of Kalrock Capital based in London and UAE-based entrepreneur Murari Lal Jalan, was chosen to revive the grounded airline.
Revival Efforts Amidst Service Halt
Jet Airways ceased its operations in April 2019 due to financial constraints, with outstanding debts reaching around Rs 8,000 crore.
The CoC approved JKC’s revival plan in October 2020, aiming to reestablish the airline’s services after a prolonged hiatus.