Jet Airways winning bidder, Jalan-Kalrock Consortium has sought more time to deposit the USD420 million demanded by the Committee of Creditors (CoC). The consortium has provided its payment schedule to NCLAT.
Jet Airways : Need more time to deposit
In a hearing at National Company Law Appellate Tribunal, Jet Airways winning bidder Jalan-Kalrock Consortium has asked to provide more time to pay the deposit amount sought by the banks. Some days ago, the Committee of Creditors told the NCLAT that if the consortium deposits amount worth USD420 million in the airline, then it will not go against the airline handover to JKC. CoC said that the depositing of USD420 million comes as a condition precedent for takeover.
USD 420 million equates Rs 350 crore. Now Jalan-Kalrock Consortium has provided its plan to deposit the amount. The consortium said that it will pay amount of Rs 100 crore by August 31 and another Rs 100 crore amount by September 30. For the remaining Rs 150 crore, the consortium has alowed the banks to go ahead and encash the bank guarantee.
The appellate tribunal has asked the consortium to state the conditions to seek the extension in the next hearing.
More updates regarding the airline
Recently, the airline recruited Captain Jatinderpal Singh Dhillon to be the accountable manager of the airline. Former accountable manager Captain PP Singh had resigned in April just after the resignation of CEO Designate Sanjiv Kapoor. The airline also appointed 2 Directors and a Chief Financial Officer. In the last hearing, JKC claimed that banks never wanted the NCLT approved resolution plan to succeed. To this, banks kept their condition that if Jalan-Kalrock Consortium deposits Rs 350 crore, as part of the Conditions Precedent, banks will give permission for airline takeover.
The airline in April to June quarter incurred losses worth Rs 50.65 crore. It reported a revenue of Rs 37.57 crore during the same period.
Source Credits : Economic Times