A bench headed by judicial members- Janab Mohammad Ajmal and V Nalasenapathy had reserved their order after hearing all parties including successful resolution applicants, lenders, DGCA, and others.
The Mumbai bench of the National Company Law Tribunal along with some riders has approved the resolution plan by Kalrock Capital and Murari Lal Jalan for Jet Airways NSE 4.96%.
Successful bidders have been asked to obtain the necessary approval from the concerned authorities within 90 days.
A bench headed by judicial members- Janab Mohammad Ajmal and V Nalasenapathy had reserved their order after hearing all parties including successful resolution applicants, lenders, DGCA, and others.
The bid by the consortium of Kalrock Capital and Murari Lal Jalan was approved by the Creditors Committee in October last year. Both of them have no prior experience of running an airline. Kalrock is a UK-based asset management company, while Murari Lal Jalan is an entrepreneur based outside the UAE.
According to the resolution plan, the successful bidder has proposed a total cash flow of Rs 1,375 crore for the revival of the company. The revival plan envisages NCLT starting operations with 30 aircraft within six months with the approval of the scheme. On the sticky issue of slots, the Civil Aviation Ministry had argued that the airline cannot bank on historicity to retrieve the lost slot.
The government had proclaimed that “These slots are not the property of the airlines and for any corporate operator, they are only permissions, which remain with the airline subject to meeting certain requirements. Further, MoCA and DGCA said, “Further, bilateral rights are national property and not the assets of any airline that is using them and it has to be utilized to the maximum at all times.” Because of the above factual situation, it cannot be claimed as a right.
Naresh Goyal founded Jet Airways 25 years ago. The airline stopped facing challenges in raising funds to keep itself running on April 17, 2019, and was admitted to the solution process in June 2019.
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