The creditors of grounded airline Jet Airways agreed on Monday to Jalan-Kalrock’s plea of an extension of payment deadline till September 30 as the National Company Law Appellate Tribunal (NCLAT) reserved orders in the case.
The Jalan Kalrock Consortium (JKC), the successful resolution applicant of bankrupt airline Jet Airways, has committed to make payments of Rs 350 crore, including Rs 100 crore by the end of August.
A bank guarantee of Rs 150 crore is also included in the total payment schedule which the JKC has urged the committee of creditors to encash.
The CoC has objected to JKC’s decision of making the bank guarantee as a means to settle dues as it is supposed to act as a financial backup. The lenders reportedly argued that against the claim of Rs 7000-8000 crore, JKC is finding it difficult to pay even Rs 350 crore.
Last week the NCLAT asked JKC to file an application outlining the modalities of payment of Rs 350 crore within 24 hours.
Ten days ago, the CoC told NCLAT that it will not pursue the appeal for transfer of ownership if Rs 350 crore is paid by JKC. This was a significant departure from the CoC’s July stand where they told the Supreme Court that the NCLT-approved resolution plan was not working and therefore sought a liquidation of the airline.
Before agreeing to pay the Rs 350 crore as demanded by the airline’s lenders, JKC was awaiting management transfer of Jet Airways claiming that the lenders were delaying the process and showing reluctance. In January this year, the National Company Law Tribunal (NCLT) allowed for transfer of Jet Airways to JKC amidst protests by the lenders.
In July aviation regulator, Directorate General of Civil Aviation (DGCA) awarded a renewal of the Air Operator Certificate (AOC) of Jet Airways for a period of one month.
The license renewal, which is valid till September 3, was granted with the purpose of supporting the corporate insolvency resolution process, DGCA had clarified. Jet’s previous AOC which was valid for one year got expired on May 19 this year after the airline remained grounded.
After grounding all flights in April 2019 following mounting financial troubles, Mumbai-based Jet Airways was admitted to the corporate insolvency resolution process where the Jalan Kalrock Consortium (JKC) emerged as the winning bidder two years later.