Law tribunal allows transfer of Jet Airways ownership to Jalan-Kalrock consortium: Report

Bengaluru:

India’s national company law tribunal has allowed the transfer of ownership of carrier Jet Airways to a consortium led by United Arab Emirates businessman Murari Lal Jalan and London-based Calrock Capital, two sources told Reuters.

Once India’s largest private airline, Jet ran out of cash in April 2019. It was to resume operations by the first quarter of 2022 under its new owners.

However, the lenders are at loggerheads over a resolution plan to bring the airline out of bankruptcy. Jet owes about 180 billion rupees ($2.21 billion) to lenders.

“The next steps will involve the Jalan committee bringing in capital, implementing the plan and resuming operations,” said a direct source familiar with the decision.

A banker said the lenders would decide on any move after consultations among the consortium, once the complete order is uploaded.

The tribunal, which had already approved the consortium’s resolution plan for Jet, also fixed November 16, 2022, as the effective date of ownership, said one of the sources.

The Jalan-Kalrock consortium will have to clear its dues with all lenders within 180 days, or six months from November 16, the source said.

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