News Brief
Tribunal Orders Transfer Of Jet Airways Ownership To JKC Following Prolonged Legal Dispute, Here's All About It
Jet Airways
The National Company Law Appellate Tribunal (NCLAT) has directed Jet Airways' monitoring committee to finalise the transfer of the airline's ownership to Jalan Kalrock Consortium (JKC) within the next 90 days.
The consortium is also mandated to secure an air operator's certificate within the same period, as per the tribunal's ruling.
Furthermore, the tribunal has affirmed the adjustment of the Performance Bank Guarantee, totalling Rs 150 crore, towards the initial tranche payment of Rs 350 crore as per a report by The Hindu Businessline.
Despite JKC depositing Rs 200 crore in two instalments by September last year, lenders argued that the consortium had not fulfilled various conditions specified in the resolution plan, such as clearing airport dues and making the first tranche payment.
This decision comes after a protracted legal battle between Jet Airways' lenders and Jalan Kalrock Consortium, with the matter being deferred to the NCLAT by the Supreme Court for resolution.
A spokesperson for JKC stated, "NCLAT has approved the implementation of the resolution plan as originally sanctioned without any deviations and has instructed lenders for specific and immediate execution. No relief has been granted to lenders. Lenders are required to create security on immovable properties offered by SRA within 30 days from today."
He continued, "Upon the creation of such security, lenders are to adjust the performance bank guarantee of Rs 150 crore towards the Rs 150 crore payment from SRA. Within 30 days of creating security, lenders are to issue shares of Jet Airways to SRA and hand over the company. Within 30 days from the date of such handover, SRA and lenders are to fulfill all payments to creditors as per the approved resolution plan."
He further added, "Jet Airways can commence business and operations, subject to regulatory approvals, after the handover to SRA."
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