The Jalan-Kalrock Consortium has deposited INR1 billion rupees (USD42.1 million) as payment to Jet Airways’ former banks just three days after India’s National Company Law Appellate Tribunal (NCLAT) gave it a 30-day extension, to September 30, to pay INR3.5 billion (USD42.3 million) for the purpose, the Press Trust of India news agency reported.
“JKC confirms to have deposited [INR1 billion] in Jet Airways in less than 48 hours of the NCLAT allowing implementation of the revival plans,” the consortium said in a statement released late in the evening on August 31.
The deposit marks a major step forward for the revival of the bankrupt carrier following a long and acrimonious legal battle over the infusion of funds between the consortium and the lenders, otherwise known as the Committee of Creditors and led by the State Bank of India.
The consortium had earlier deposited a “performance bank guarantee” of INR1.5 billion (USD18.1 million) towards Jet Airways’ revival. It stuck to the position that any further funds would be possible only after the transfer of ownership of the airline. Following a string of legal rulings aimed at resolving the conflict, the consortium committed to paying INR1 billion by August 31. It must now pay another INR1 billion by September 30. The remaining INR1.5 billion (USD18.1 million) is to be obtained by encashing the above guarantee.
“We thank all our stakeholders for their continued support. We are confident that this progress will lead to a successful resurgence of Jet Airways and we look forward to bringing the joy back to our guests,” the consortium’s statement added.
The next hearing on the matter at the NCLAT is due on October 4.
