On Tuesday, the National Company Law Tribunal (NCLT) has approved the revival plan for grounded airline Jet Airways. The resolution plan for Jet Airways submitted by Kalrock Jalan consortium is passed. The Directorate General of Civil Aviation (DGCA) & Ministry of Civil Aviation (MCA) have been given 90 days from today for allotting slots to the airline. The airline’s slots had been transferred to other companies owing to its shut down. This decision is going to mark the return of India’s oldest & largest private airline. MCA & DGCA have told that Jet Airways would not be able to claim its historical slots. Post the NCLT’s approval, a rise of 5% in the shares of the National Stock Exchange was observed. At 1:30 pm, Jet Airways was up by 4.96% at Rs.99.45. Jet Airways was grounded in April 2019 when it was facing financial constraints. An SBI led consortium had taken up the initiative that referred it to NCLT for resolution under the insolvency & bankruptcy code (IBC). In October 2019, a consortium led by Murari Lal Jalan & Kalrock Capital secured the bid for Jet Airways after several rounds. The Kalrock Jalan consortium has offered Rs.1,183 crore as repayment over a period of five years to financial creditors, employees & other staff of Jet Airways. It has offered a 9.5% stake in Jet Airways & a 7.5% stake in Jet Privilege to financial creditors. Kalrock Capital is a UK-based asset management company & Murari Lal Jalan is a UAE-based entrepreneur. The key lenders to Jet Airways are SBI, Yes Bank, IDBI Bank & Canara Bank.
Source: India Today