Jet's lenders approve Kalrock Capital-Murari Jalan's plan to revive airline

Marco Green
October 18, 2020

The resolution plans of both bidders have also not been made public, but speculative news reports said the Kalrock consortium had offered a total payout of around Rs 866 crore, which included a Rs 380 crore payout to financial creditors and FSTC consortium's bid offer was pegged at approximately Rs 770 crore.

Jet Airways-once India's biggest private airline-hasn't flown since 17 April 2019 after it halted flights due to an acute cash crunch.

The resolution plan submitted by a consortium of London-based Kalrock Capital and UAE-based businessmen Murari Lal Jalan was approved on Saturday, the filing said, while not revealing other details of the deal.

"The resolution submitted by Murali Lal Jalan and Florian Fritsch has been duly approved by the CoC under Section 30 (4) of the Code as the successful resolution plan", said the filing.

The defunct airlines on Friday had extended the deadline for voting on the resolution plans as only half the lenders had submitted their votes and the remaining had sought time till Saturday evening to submit their votes. On March 25, 2019, as part of the bailout plan worked out by the lenders, Naresh Goyal and his wife Anita Goyal stepped down from the board. The carrier was admitted to the NCLT in June 2019, and the CoC has met 16 times since then. Etihad invested $379 million in Jet Airways back in 2013 at a price of Rs 754.74 per share.

When Jet Airways collapsed a year ago, it had a debt of over Rs 8,200 crore and needed to make repayments of up to Rs 1,700 crore by the end of March 2019. FE has learned that Kalrock Consortium had offered Rs 860 crore to all lenders, including financial and operational creditors. Jet's financial and operational creditors were owed almost 300 billion rupees after the operations were halted.

Kalrock Capital is a global firm operating in financial advisory and alternative asset management active in three verticals, real estate, venture capital and special situations, according to its website. The resolution professional (RP) for Jet Airways Ashish Chhawchharia will now move National Company Law Tribunal (NCLT) for its approval.

The Indian Express is now on Telegram.

Other reports by Click Lancashire

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