{"id":55863,"date":"2024-01-30T19:51:07","date_gmt":"2024-01-30T14:21:07","guid":{"rendered":"https:\/\/aviationa2z.com\/?p=55863"},"modified":"2024-03-12T18:21:57","modified_gmt":"2024-03-12T12:51:57","slug":"jet-airways-comeback-bidders-jkc-presents-new-payment-plan","status":"publish","type":"post","link":"https:\/\/aviationa2z.com\/index.php\/2024\/01\/30\/jet-airways-comeback-bidders-jkc-presents-new-payment-plan\/","title":{"rendered":"Jet Airways Comeback: Bidders JKC Presents New Payment Plan"},"content":{"rendered":"\n

DELHI-<\/strong> Jalan-Kalrock Consortium (JKC), the entity chosen as the successful resolution applicant for Jet Airways<\/a>, has requested the Supreme Court’s permission to substitute a \u20b9150-crore <\/strong>performance bank guarantee with a new financial instrument. <\/p>\n\n\n\n

The consortium, in its plea to the court, stated that upon the release of the bank guarantee by the lenders, led by State Bank of India, it intends to deposit \u20b9150 crore within a seven-day period.<\/p>\n\n\n\n

\"Jalan-Kalrock
Photo: Thomas Naas Photography<\/figcaption><\/figure>\n\n\n\n

Jet Airways JKC New Payment Plan<\/h2>\n\n\n\n

After being instructed by the apex court on January 17 to remit \u20b9150 crore by January 31 or confront “serious consequences,” JKC has sought the court’s intervention.<\/p>\n\n\n\n

According to sources of ET<\/em>, the lenders have rejected the proposal, expressing frustration with the consortium’s ongoing delay tactics.<\/p>\n\n\n\n

“From the lenders’ standpoint, we are now mere observers in this case, and we will abide by whatever decision the Supreme Court makes. The details are in the public domain, and the banks are constrained in their actions,” stated an individual familiar with the discussions. <\/p>\n\n\n\n

The consortium comprises Murari Lal Jalan based in Dubai and the UK’s Kalrock Capital, while the committee of creditors, led by State Bank, includes 11 banks.<\/p>\n\n\n\n

Legal representatives involved in the proceedings have informed the court about the new plan, highlighting that the consortium is securing funding from Dubai. Due to both promoters being Non-Resident Indians (NRIs), obtaining permission from the Reserve Bank of India (RBI) is a time-consuming process governed by the Foreign Exchange Management Act. <\/p>\n\n\n\n

Bank holidays have caused delays in obtaining a fresh guarantee. A lawyer commented, “This payment plan allows us to comply with the Supreme Court’s directives, ensuring that the consortium already has \u20b9150 Crores in India, which can be promptly deposited in the share application of Jet Airways.”<\/p>\n\n\n\n

\"Jalan-Kalrock
Photo:- By Uday Bararia – originally posted to Flickr as Boeing 777, CC BY 2.0, https:\/\/commons.wikimedia.org\/w\/index.php?curid=6718002<\/figcaption><\/figure>\n\n\n\n

Aim to Revive the Airline<\/h2>\n\n\n\n

The lawyer further clarified that despite an extended legal battle, the Jalan-Kalrock consortium remains dedicated to reviving the airline. <\/p>\n\n\n\n

“Despite multiple reminders, the lenders haven’t fulfilled the conditions outlined in the resolutions. Obtaining regulatory approval for director appointments from the registrar of companies takes time, and the process has been delayed, impeding the resolution process,” he added.<\/p>\n\n\n\n

The consortium successfully secured the bid to manage the airline through a bankruptcy process overseen by the State Bank of India. However, it has encountered difficulties in assuming ownership of the airline. <\/p>\n\n\n\n

The consortium has invested more than \u20b9300 crore<\/strong> in appointing executives to conduct essential probing flights required to maintain the airline’s air operator’s certificate.<\/p>\n\n\n\n

The process encountered a significant hurdle last year when the Supreme Court directed the consortium to settle provident fund and gratuity dues totaling \u20b9247.8 crore<\/strong> for the former employees of the grounded airline.<\/p>\n\n\n\n

Stay tuned with us. Further, follow us on social media for the latest updates.<\/p>\n\n\n\n

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Jet Airways to Restart Operations in 90 Days, NCLAT Upholds New Ownership of JKC<\/a><\/blockquote>