The Jalan-Kalrock Consortium, new promoters of Jet Airways, received a one-month extension to pay the deposit of Rs 350 crore. The consortium is now anticipated to make the payment before September 30.
Jet Airways promoters needed extension
In previous hearing of National Company Law Appellate Tribunal (NCLAT), the Committee of Creditors (CoC) asked Jet Airways new promoters to deposit Rs 350 crore in the airline. CoC said that if Jalan-Kalrock Consortium does so, they will not go against the airline handover to the consortium. The final date to pay the amount was August 30.
Jalan-Kalrock Consortium at the same time requested an extension of at least 1 month to pay the amount. The consortium even provided the payment timeline. NCLAT directed the consortium counsel to provide an applications seeking the conditions for extension.
JKC gets extension
Now, Jalan-Kalrock Consortium has got what it needed. The Committee of Creditors have approved the consortium’s request for extension. Now, the final date for amount deposition is September 30. The consortium said that it will pay Rs 100 crore by August 31 and an another Rs 100 crore by September 30. For the remaining Rs 150 crore, the consortium has allowed banks to encash the bank guarantee immediately. The lenders’ Additional Solicitor General stated that the bank guarantee had been utilized for other purposes and could not be used for paying the deposit amount.
Committee of Creditors also argued that they are struggling to recover Rs 350 crore from the consortium. The airline owes Rs 7,000 crore to them. How will they recover the mega amount? The appellate tribunal has reserved the order for August 28.
Workers Union intervenes
Workers Union also asked the Jalan-Kalrock Consortium to pay Pension Fund and Gratuity dues worth Rs 224 crore to the employees. To this, JKC said that they need to make provisions for gratuity. As expected, the consortium requested an extension here as well. The NCLT approved resolution plan includes paying workers their PF and gratuity dues as part of the conditions precedent.
The court will hear the matter on August 28. Stay tuned for more updates.
Source Credits : Economic Times