Jet Airways: Committee of Creditors asks Jalan Kalrock Consortium to pay Rs 350 crore

Jet Airways’ Committee of Creditors (CoC) on Monday asked the Jalan Kalrock Consortium to pay Rs 350 crore. Last month, the Jalan-Kalrock consortium had asked the National Company Law Appellate Tribunal on the transfer of ownership of the grounded airline. It claimed that the creditors were creating hindrances to restart its operations. 

On Monday, the CoC said that they may not pursue the appeal for transfer of ownership if the said amount is paid. 

Jet Airways, which has been grounded for over four years, was admitted for insolvency in 2019. The resolution plan of JKC was admitted in June 2021.

In January 2023, the National Company Law Tribunal (NCLT) had laid down condition precedents for Jalan Kalrock Consortium to fulfil the transfer of the airline's ownership. 

In July, the lenders accused the Jalan Kalrock consortium of not infusing money to repay creditors. Whereas the consortium said that banks opposed the transfer of ownership and challenged efforts to commence operations at the airline. 

On July 5, the CoC told the court it had spent Rs 470 crore since the implementation of the Corporate Insolvency Resolution Process (CIRP), without getting any return on investment. The creditors said they were incurring Rs 23 crore in expenses every month. 

The NCLAT asked CoC to file an affidavit detailing their contentions, and the case is likely to come up for hearing on August 18. 

On July 28, the consortium told NCLAT that the CoC is not permitting them to commence operations even though they had obtained all the requisite permissions from the government. 

In July, Jalan Kalrock Consortium announced the appointment of Jatinderpal Singh Dhillon as the airline's accountable manager. Further, two whole-time directors and a non-executive director were also appointed. 

Last week, Jet Airways got its air operator’s certificate renewed from the civil aviation regulator Director General of Civil Aviation. The earlier AOC, which was granted in 2022, expired in May 2023.

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