Jalan Kalrock ₹100 Crore Infusion: Jet Airways Inches Closer to Revival

In a significant development for the revival of Jet Airways, the Jalan Kalrock Consortium (JCK) announced on Thursday that it has promptly deposited ₹100 crore into the airline, just days after receiving the green light from the National Company Law Appellate Tribunal (NCLAT) to implement its revival plans.

JCK’s Ongoing Investment in Jet Airways

JCK, the winning bidder entrusted with the task of resurrecting the grounded carrier Jet Airways, has been actively investing in the airline’s revival. To date, the consortium has injected a total of ₹250 crore into the beleaguered airline.

In a statement, the consortium declared, “With this recent infusion of funds, JKC has now committed ₹250 crore to Jet Airways. The consortium is now solely responsible for funding the remaining ₹100 crores by September 30, 2023, in order to assume control of the airline.”

NCLAT’s Decision to Extend Timelines

The NCLAT, comprised of a three-member bench, granted the consortium’s request to extend the timeline for investment and also approved an adjustment of ₹150 crore from the performance bank guarantee (PBG) to be allocated towards the payment of ₹350 crore.

Consortium’s Commitment

The Jalan Kalrock Consortium had previously submitted an undertaking before the appellate tribunal, in which it pledged to deposit ₹100 crore by August 31, 2023, and an additional ₹100 crore by September 30, 2023.

Also Read: Jet Airways Is Ready To Fly Again; What Happened to Ticket Refunds? When Will You Receive Refund Credit?

Lender’s Opposition

On August 21, 2023, Additional Solicitor General N Venkatraman, representing the lenders, expressed opposition to the encashment of the performance bank guarantee (PBG).

He also raised concerns about the extension, stating that half of the ₹350 crore would be directed towards settling regulatory dues.

Senior advocate Vikas Singh, representing the Committee of Creditors (CoC), highlighted the alarming financial situation of Jet Airways. He revealed that the total dues, which stood at ₹7,800 crore when the airline ceased operations four years ago, have now ballooned to nearly ₹12,000 crore.

Complex Revival Process

The insolvency resolution proceedings against Jet Airways commenced in June 2019, and it wasn’t until June 2021 that the National Company Law Appellate Tribunal approved the consortium’s resolution plan. Nevertheless, the plan’s execution has faced delays.

Jet Airways’ Prolonged Hiatus

Jet Airways has remained grounded since April 17, 2019, leaving aviation enthusiasts and stakeholders eagerly awaiting its resurgence in the Indian aviation landscape. As the consortium takes significant strides towards revitalizing Jet Airways, the aviation industry watches closely to see if this storied carrier will return to the skies once more.