Jet Airways gets second wind: NCLAT upholds handover to Jalan-Karlock consortium
NEW DELHI : Jet Airways received a glimmer of hope for its revival after an appellate tribunal directed the bankrupt airline’s lenders to hand over the company to its successful bidder, the Jalan-Karlock consortium, within 90 days. The National Company Law Appellate Tribunal on Tuesday also upheld the resolution plan for Jet Airways, which has been grounded since 2019 amid mounting debt and a liquidity crisis. The National Company Law Tribunal had in January 2023 allowed the handover of Jet Airways’ ownership to the Jalan-Karlock consortium.
The airline’s lenders, however, had challenged this alleging non-compliance by JKC with the resolution plan. The NCLT had on 22 June, 2021 approved a resolution plan submitted by the Jalan-Kalrock consortium. The consortium comprises Murari Lal Jalan, a UAE-based non-resident Indian holding shares in Jet Airways in his personal capacity, and Florian Fritsch, who holds shares through his investment holding company Kalrock Capital Partners Ltd, Cayman.
The appellate tribunal has asked the consortium to obtain an air operator’s certificate as part of the handover process. It has also directed Jet’s lenders to create security on three Dubai-situated immovable properties offered by JKC within 30 days. Following this, the lenders would have to adjust the security against a performance bank of ₹150 crore, from which JKC will be required to complete its first tranche of ₹350 crore as a condition precedent to taking ownership of Jet Airways.
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