Jet Airways asked to pay ₹350 crore to creditors by 31 Aug
NEW DELHI : Jet Airways’ new management has to pay ₹350 crore to the Committee of Creditors (CoC), National Company Law Appellate Tribunal (NCLAT) was informed on Monday. The Jalan Kalrock Consortium (JKC) has to pay ₹350 crore before 31 August as a condition precedent. The next hearing is on 18 August.
Additional Solicitor General N Venkatraman, representing the lenders submitted that CoC may not pursue the plea and oppose the transfer of the ownership if the amount is paid. The court has given two weeks’ time for the CoC to file an affidavit. Krishnendu Dutta, senior lawyer for JKC, stated that they will do their best to pay the amount on the given date.
The plea was filed by State Bank of India against Jet Airways bidder JKC to recover pending dues. In the previous hearing, Dutta argued for JKC that the CoC is preventing the consortium from commencing operations, even after obtaining all necessary permissions from regulatory authorities and the government. He urged the tribunal to facilitate the early commencement of operations for Jet Airways, warning that failure to do so could result in the allocation of valuable slots to other airlines.
The Directorate General of Civil Aviation (DGCA) extended air operator certificate of the airline until 3 September, even as it undergoes corporate insolvency resolution process (CIRP). On 5 July, the CoC took the matter to the Supreme Court and stated that it might be more prudent to wind up the airline, given that not a single penny has been repaid to them, and no funds have been injected into the debt-laden airline. The lenders themselves have infused nearly ₹400 crore of public money into the airline, which includes settling airport dues.
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