Jalan Kalrock Consortium says it has completed infusion of Rs 350 cr in Jet Airways, ready to take control of airline

Jalan Kalrock Consortium (JKC) on Friday said it has completed the infusion of Rs 350 crore in Jet Airways with an additional investment of Rs 100 crore. The consortium, which won the bid for the revival of cash-strapped carrier Jet Airways, said it had deposited Rs 100 crore in the airline last week. With this, the total investment in the airline has touched Rs 350 crore, as per the court's resolution plan.

The consortium has said it aims to re-establish the airline's operations from next year and further announcements regarding the launch date of Jet Airways will be made in the coming weeks, according to the statement.

"The consortium’s strategy to revive the airline remains unaltered. The new promoters are determined to re-establish the operations of the airline up and running in 2024. Further announcements regarding the launch date of Jet Airways will now be made in the coming week,” JKC said in a statement.

Jet Airways’ revival is being done under the Insolvency and Bankruptcy Code, following the National Company Law Tribunal-approved resolution plan of the Jalan Kalrock Consortium.

On January 13, NCLT allowed the transfer of the beleaguered airline to the consortium. However, the Committee of Creditors (CoC) took it to NCLAT opposing the transfer.

Jet Airways stopped its operations in April 2019 because of a severe cash crunch and mounting debt of about Rs 8,000 crore. In October 2020, the airline's CoC approved the revival plan submitted by the Jalan-Kalrock consortium. The Jalan-Kalrock consortium is a partnership between UAE-based businessman Murari Lal Jalan and London-based Kalrock Capital in June 2021.

The consortium was due to infuse a total of Rs 350 crore by September 30 to take control of the airline. It had originally agreed to infuse the amount by August 31 but had sought an extension on the same.

The consortium’s proposed payment schedule was presented on August 18. Senior advocate Ravishankar Prasad, who appeared for JKC, informed the court that the consortium would deposit Rs 100 crore by August 21 and another Rs 100 crore by the end of September.

On the other side, additional solicitor general N Venkatraman, representing the lenders, including State Bank of India (SBI), countered that the infusion of Rs 350 crore is merely the first step towards payment of dues.

He added that after this initial payment, three more tranches of money are to be paid to the lenders, with the final step being the transfer of equity shares.

Following this, the appellate tribunal requested an official application within 24 hours.

On August 28, the appellate tribunal granted an extension of time to JKC, which is the successful resolution applicant for Jet Airways, to make a payment of Rs 350 crore to its lenders. JKC was permitted to make the payment by September 30.

JKC had asked for an extension for a payment due on August 31. NCLAT had instructed JKC to submit an application outlining the revised payment schedule.

The appellate tribunal granted the consortium permission to use Rs 150 crore from their performance bank guarantee to pay off Rs 350 crore. The case will be revisited on October 4 for further deliberation.

A report in the Economic Times said the consortium has been meeting aircraft manufacturers, lessors, pilot training organisations and airports expecting to start the business. Last month, Ankit Jalan, a board member of the consortium, met Francisco Gomes Neto, CEO of Brazilian aircraft manufacturer Embraer.

On September 1, Jet Airways founder Naresh Goyal was arrested in a money laundering case linked to loans and credit lines given to the airline by Canara Bank.

The money laundering case is based on a first information report (FIR) against Jet Airways, Goyal, his wife Anita and some former company executives, which was registered by the CBI on May 3. The FIR was filed after Canara Bank alleged a Rs 538-crore fraud.

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