The National Company Law Appellate Tribunal (NCLAT) has granted approval for the transfer of ownership of Jet Airways to the Jalan Kalrock Consortium (JKC) on March 12, 2024. This decision comes nearly a year after the initial permission was granted in January 2023.
In its ruling, the appellate tribunal has instructed lenders to finalize the ownership transfer within 90 days. Additionally, JKC has been directed to obtain an air operator's certificate within the same timeframe.
The tribunal extended the deadline for JKC to pay Rs 175 crore to SBI, the largest lender of Jet Airways, citing the considerable time elapsed since the initial approval.
NCLAT has allowed the adjustment of the Performance Bank Guarantee (PBG) of Rs 150 crore towards the first tranche payment of Rs 350 crore. This move aims to address the concerns of Jet Airways employees who have faced financial hardships during the airline's insolvency proceedings.
Jet Airways, which ceased operations in April 2019, has creditor claims amounting to Rs 78 billion ($941.3 million), with State Bank of India (SBI) being its principal lender.
In September 2023, JKC deposited Rs 200 crore in two installments. However, lenders alleged non-compliance with various conditions of the resolution plan.
The Supreme Court rejected JKC's challenge against the NCLAT order allowing the sale of Jet Airways' aircraft, emphasizing the potential injection of funds and assistance in the company's revival. Previously, the NCLAT had permitted Malta-based company Ace Aviation to purchase Jet Airways aircraft.
JKC objected to this sale and appealed to the Supreme Court in February 2024, but the court upheld the NCLAT's decision, highlighting the potential benefits for Jet Airways' revival efforts.
