Jet Airways: Kalrock Capital and Murari Lal Jalan’s resolution plan gets nod

October 18, 2020 8:00 AM

The deadline for completing the Jet Airways insolvency resolution process was earlier extended beyond August 21 due to Covid-19.

Jet Airways had earlier attracted 12 expressions of interest (EoIs) from bidders, which were narrowed down to two prospective suitors.Jet Airways had earlier attracted 12 expressions of interest (EoIs) from bidders, which were narrowed down to two prospective suitors.

By Ankur Mishra

Lenders to Jet Airways have approved the resolution plan submitted by a consortium led by Kalrock Capital and entrepreneur Murari Lal Jalan. FE has learned that Kalrock Consortium had offered Rs 860 crore to all lenders, including financial and operational creditors.

The airline had admitted claims worth Rs 15,525 crore, of which admitted claims of financial creditors stood at Rs 7,460 crore. The other bidder was a consortium comprising Haryana-based Flight Simulation Technique Centre, Mumbai-based Big Charter and Abu Dhabi’s Imperial Capital Investments. The resolution professional (RP) for Jet Airways Ashish Chhawchharia will now move National Company Law Tribunal (NCLT) for its approval.

“The offer by Kalrock consortium was very close to liquidation value. But, we had voted to keep the company as a going concern, ” a senior executive involved in the matter told FE. The resolution plan submitted by Kalrock consortium was slightly better than the other bidder in terms of value, he added.

Jet Airways had earlier attracted 12 expressions of interest (EoIs) from bidders, which were narrowed down to two prospective suitors. One of the two bidders had sought more time to revise the bid upwards, and lenders had agreed to give more time for both consortiums to submit revised bids.

The deadline for completing the Jet Airways insolvency resolution process was earlier extended beyond August 21 due to Covid-19.

The defunct aviation company has admitted claims of Rs 7,460 crore from financial creditors. The lead creditor, State Bank of India, has the highest admitted claims of Rs 1,636 crore, followed by Rs 1,084 crore from Yes Bank, Rs 754 crore from Punjab National Bank and Rs 594 crore from IDBI Bank, among others. FE reported earlier that total amount claimed by creditors had crossed Rs 40,000 crore as on September 25. However, the airline had only admitted claims worth Rs 15,525 crore.

The National Company Law Tribunal (NCLT) had earlier admitted Jet Airways for insolvency proceedings on June 20, 2019.

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