Jet Airways insolvency: Creditors question source of Rs 200 cr deposited by Jalan-Kalrock Consortium

Jet Airways creditors on Monday told the Supreme Court that the resolution plan of the consortium of Jalan-Fritsch was unviable and unworkable. The airline services were stopped in April 2019 and later the consortium emerged as the winning bidder under the insolvency resolution process. However, ownership transfer has been hanging fire amid continuing differences between the lenders and the consortium.

Amid continuing differences between lenders of bankrupt-Jet Airways and the consortium, the appellate tribunal also asked both parties to cooperate with each other for implementation of the resolution plan for the airline.

In an order dated June 9. the division bench of the National Company Law Tribunal (NCLT) directed the resolution professional Viceroy Hotels to restart the sale process and complete is within 60 days of the order.

Last week, Additional Solicitor General N Venkataraman, representing lenders including SBI and other banks, told NCLAT that there are apprehensions about the source of funds, which deposited the money for Jalan-Kalrock Consortium's (JKC). The payment is not compliant with the resolution plan as it mandates that the money is to be paid through JKC, ASG had submitted.

The appellate tribunal said that the National Company Law Tribunal (NCLT) had approved the consortium's resolution plan in January, but the matter on appeal for stay was heard by it in March, which was turned down.

The Jalan-Kalrock consortium has officially announced that it has infused Rs 350 crore into Jet Airways and outlined its intentions to restart operations in the upcoming year.

Before the National Company Law Appelate Tribunal (NCLAT), banks said saying the consortium hasnt infused any money to repay creditors while JKC said the lenders have thwarted transfer of ownership and challenged its every effort to commence operations at Jet.

The State Bank of India-led consortium of lenders has filed an application with the Supreme Court, seeking the winding up of debt-laden Jet Airways and initiation of the liquidation process. The consortium alleges that the Jalan-Kalrock consortium, which recently infused Rs 350 crore into the bankrupt airline, has not taken appropriate steps to meet its obligations as per the approved Resolution Plan.

The appellate tribunal has directed the airline’s lenders to hand over the company to the Jalan-Karlock consortium within 90 days

The committee of creditors (CoC) of bankrupt airline Jet Airways on Monday agreed to give an extension to the payment deadline to the Jalan Kalrock Consortium till September 30, but differed on the mode.