Jalan Kalrock Consortium (JKC), the winning bidder for the revival of grounded carrier Jet Airways, on Friday, announced it has infused an additional Rs 100 crore in the airline in accordance with the court-approved resolution plan. The consortium led by Murari Lal Jalan and Florian Fritsch of Kalrock Capital, in a statement, said that with this infusion, JKC has fulfilled its total financial commitment of Rs 350 crore ($42.1 million) equity, and all commitments by JKC now stand fulfilled to take control of the airline.
“Kalrock Consortium (JKC) today completed an additional infusion of 100 crore, reaffirming its unwavering commitment to a successful resurgence of Jet Airways. With this infusion, JKC has now fulfilled its total financial commitment of Rs 350 crore equity as per the court-approved resolution plan, and all commitments by JKC now stand fulfilled to take control of the iconic airline,” the consortium said in the statement.
Announcement @JalanKalrock pic.twitter.com/23YQem58xZ
— Jet Airways (@jetairways) September 29, 2023
JKC also said it expects that the airline will resume operations next year, and they are likely to announce the specific launch date in the coming days. Additionally, JKC has emphasised that the consortium’s plan to revive the airline remains unchanged. Jet Airways has been grounded since April 17, 2019.
“The new promoters are determined to re-establish the operations of the airline up and running in 2024,” it said and added that further announcements regarding the launch date of Jet Airways will now be made in the coming weeks.
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Jet Airways Revival Journey So Far
On April 17, 2019, Jet Airways was grounded due to financial difficulties and a debt of approximately Rs 8,000 crore, according to a Moneycontrol report. In October 2020, the Committee of Creditors (CoC) approved the revival plan submitted by the Jalan-Kalrock consortium to take over Jet Airways.
On January 13 this year, the National Company Law Tribunal (NCLT) approved the transfer of Jet Airways to the consortium led by London-based Kalrock Capital and UAE-based entrepreneur Murari Lal Jalan.
However, late the CoC opposed the transfer and took the matter to the National Company Law Appellate Tribunal (NCLAT). In May, NCLAT permits an extension to the Jalan Kalrock Consortium (JKC) to meet the condition precedents of the resolution plan. Creditors approached the Supreme Court, seeking to wind up the airline, stating that the NCLT-approved resolution plan was not workable.
On August 28, NCLAT granted an extension to JKC to make a payment of Rs 350 crore to lenders and allowed the use of Rs 150 crore from their performance bank guarantee. JKC requested an extension for a payment due on August 31, promising to deposit Rs 100 crore by August 31 and another Rs 100 crore by the end of September.
However, creditors claimed that JKC has not fulfilled the condition precedents mandated by NCLT’s order and has not infused enough funds to meet financial obligations. JKC argues that creditors should initiate the process of transferring ownership of the airline to enable fund transfers. The case is scheduled to be heard again on October 4 for further deliberation.