Summary
- The Jalan-Kalrock Consortium has deposited $12 million as a part of a revival plan for Jet Airways.
- The National Company Law Appellate Tribunal (NCLAT) allowed Jet Airways’ revival plans to proceed, extending the deadline for the whole payment to September thirtieth.
- Jet Airways’ winning bidders and creditors were engaged in a financial settlement dispute that resulted in a stalemate, but progress is now being made, with the airline recently receiving AOC again and negotiations with creditors underway.
Jet Airways has received one other round of money infusion, with its winning bidder, the Jalan-Kalrock Consortium (JKC), depositing $12 million as a part of its revival plan. JKC was asked by Jet’s creditors last month to pay the dues for things to maneuver forward. The present amount is the primary of two installments, with the following one due by the top of this month.
Winning bidder pays $12 million
The Jalan-Kalrock Consortium has deposited $12 million inside days of the National Company Law Appellate Tribunal (NCLAT) allowing the implementation of Jet Airways’ revival plans. JKC released a press release that said,
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In August, the management team handling Jet Airways was given until the top of August to pay over $40 million to creditors for things to maneuver forward. The carrier’s resolution process had reached a stalemate during which each side (the winning bidders and the creditors) were engaged in a tussle over Jet’s financial settlement. But things are finally progressing after a lull.
More to come back
The initial amount put aside for JKC to pay was around $42 million by the top of August. The NCLAT, nevertheless, prolonged that deadline by one other month and asked Jet to clear the dues by September thirtieth.
The entire amount to be paid was also reduced following the adjustment of the performance bank guarantee. This brought it all the way down to around $24 million to be paid in two installments.
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The creditors, as such, weren’t entirely against deadline extension up to now. They did, nevertheless, object to the changes being made to the resolution plan, resembling the introduction of a performance bank guarantee price $18 million. The court sided with Jet’s bidders and allowed the encashment of the bank guarantee.
Revival plan
Jet Airways was once more granted its AOC recently. The carrier was initially given the AOC last yr, which expired in May 2023 since it didn’t resume flights. Getting an AOC the second time wasn’t quite as easy. The DGCA had asked Jet’s winning bidders to first iron out the problems with its lenders before expecting its AOC back.
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The airline’s management has been involved in negotiating with its creditors, which evolved to the purpose that in July, it was stated that Jet Airways would probably must be wound up for the creditors to get well their money.
Thankfully, things appear to be progressing now. Jet is already massively delayed in restarting operations, but the most recent developments are keeping the hopes alive.
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