Jet Airways : Lenders of debt-ridden Jet Airways are opposing the transfer of ownership of the airline to the Jalan-Kalrock consortium. They have reached the National Company Law Appellate Tribunal ( NCLAT ) regarding this matter on Tuesday, 24 January . CNBC-TV 18 has reported quoting sources. NCLAT is an Appellate Insolvency Tribunal. The lenders have filed a petition in the NCLAT against the January 13 order of the NCLT , which had approved the transfer of ownership to the consortium. Earlier, the NCLT had ruled that the consortium had satisfied the conditions for transfer of ownership.
When was the revival plan approved
Jet Airways had ceased operations in April 2019 due to losses and debt of around Rs 8,000 crore. In October 2020, the airline’s committee of creditors approved a revival plan submitted by a consortium of Dubai-based businessman Murari Lal Jalan and UK’s Kalrock Capital .
Earlier, Moneycontrol had reported quoting sources that Jet’s lenders are planning to challenge the NCLT order in a higher court.
NCLT had given approval to transfer the ownership
The NCLT’s January 13 order had approved the transfer of ownership of the jet to JKC, citing fulfillment of conditions. The tribunal had fixed November 16, 2022 as the effective date for the resolution plan. JKC has about six months to clear all dues of Jet Airways and take over its control.
The screw was stuck due to the conditions
JKC had appealed for a direction from the bench to hand over the ownership of the jet to him. However, the lenders to Jet Airways said that JKC had not fulfilled three of the five conditions mentioned in the resolution plan approved by the NCLT. It was at this point of disagreement between the lenders of Jet Airways and JKC that a standoff broke out. Because the National Company Law Appellate Tribunal (NCLAT) in its October 21 order had said that JKC has “satisfied all the necessary conditions to the satisfaction of the Monitoring Committee”.
Ashish Chhawchharia, a member of Jet Airways’ monitoring committee, had sent a letter to the JKC on January 2 objecting to the use of the designation of Sanjeev Kapoor as the CEO of Jet Airways as the airline was not being implemented as part of the resolution plan. Under JKC is yet to be handed over.
7 member monitoring committee was formed
In March last year, aviation veteran Sanjeev Kapoor was appointed by JKC as the CEO of grounded Jet Airways. The Monitoring Committee consists of 7 members. The Monitoring Committee includes Ashish Chawchharia as a non-voting member. In addition, the committee consists of three voting members elected by the lenders and three voting members elected by the JKC.
