There seems to be a slightest of hope remaining with Jet Airways relaunch process as Jalan-Kalrock Consortium, the winning bidder of Jet Airways has finally infused a big amount of Rs 100 crore in the airline. The airline’s court battle is again on track.
Jet Airways get infusion of Rs 100 crore
Jalan-Kalrock Consortium has fulfilled its promise which it made in the National Company Law Appellate Tribunal (NCLAT) hearing last week. If you are unaware of the full scenario, lets have a recap and then, we will go forward.
On behalf of Conditions Precedent, Committee of Creditors (CoC) of Jet Airways sought Rs 350 crore from Jalan-Kalrock Consortium. The CoC said that if Jalan-Kalrock Consortium pays this much amount, then the committee will not appeal against the airline handover to JKC. JKC said that it intends to pay the amount but needs an extension. At that time, August 31 was the last deadline to pay full amount.
3 days ago, NCLAT approved the extension requested by the lawyers of Jalan-Kalrock Consortium. As per the scheduled plan, JKC said that it will deposit Rs 100 crore by August 31. Another Rs 100 crore will be invested by September 30. For the remaining Rs 150 crore, the consortium said that it allows CoC to encash the Performance Bank Guarantee worth Rs 150 crore.
Rs 250 crore done. What next?
With encashment of bank guarantee and infusion of Rs 100 crore, Jalan-Kalrock Consortium has already paid Rs 250 crore to the banks. Now, Rs 100 crore is remaining, which JKC will have to pay by September 30. But if you are thinking that the path is going to be crystal clear after then, then let me remind you that the airline is tangled in a bankruptcy proceeding and that too in India, where there are many loopholes.
There is no clarity on what will happen to the Provident Fund and Gratuity Dues of airline employees. This amount sums up around Rs 224 crore. There is no clarity from any party that who will pay the amount and when? Lets wait till September 30 to find out more about the court proceedings.
Source Credits : JetArena