Jet Airways’ seven-member monitoring committee meets

By: |
June 30, 2021 2:00 AM

The seven members include three nominated by successful bidders, three by the financial creditors, and an independent insolvency professional. The company has not revealed the names of the members. A monitoring committee is typically appointed for the smooth implementation of the resolution plan after it is approved by the court.

The National Company Law Tribunal on June 22 approved the resolution plan of the Murari Lal Jalan-Kalrock Capital consortium with a few riders.The National Company Law Tribunal on June 22 approved the resolution plan of the Murari Lal Jalan-Kalrock Capital consortium with a few riders.

Jet Airways constituted a seven-member monitoring committee to supervise the defunct airline till the implementation of its resolution plan on June 28, and the panel held its first meeting the same day, the company said in a stock exchange filing on Tuesday.

The seven members include three nominated by successful bidders, three by the financial creditors, and an independent insolvency professional. The company has not revealed the names of the members. A monitoring committee is typically appointed for the smooth implementation of the resolution plan after it is approved by the court.

The National Company Law Tribunal on June 22 approved the resolution plan of the Murari Lal Jalan-Kalrock Capital consortium with a few riders. The consortium will have to get approval of slots for Jet Airways from the Directorate General of Civil Aviation within 90 days.

“The terms of appointment and duties of the monitoring committee will be as set out in the resolution plan, and the day-to-day operations and the management of the company shall be carried out by the monitoring committee until the closing date as defined in the resolution plan,” Jet Airways said in the filing.

The Murari Lal Jalan-Kalrock consortium has offered Rs 1,183 crore to the lenders, which implies a haircut of around 90% for them on total admitted claims of Rs 15,525 crore. The consortium has agreed to pay the Rs 1,183 crore over five years to the financial creditors, employees, and workmen of Jet Airways. It has also offered a stake of about 9.5% stake in Jet Airways and of 7.5% in Jet Privilege to the financial creditors. Kalrock Capital is a UK-based asset management company and Murari Lal Jalan is an entrepreneur based in the UAE.

Jet Airways 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,`754 crore from Punjab National Bank and `594 crore from IDBI Bank, among others.

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