India's National Company Law Appellate Tribunal (NCLAT) has granted a 30-day extension to September 30 for the Jalan-Kalrock Consortium (JKC), the winning bidder for Jet Airways (Mumbai International), to pay INR3.5 billion Indian rupees (USD42.1 million) to the airline's lenders.
Following losses of INR80 billion (USD218 million), Jet Airways ceased operations in April 2019 and underwent insolvency proceedings. JKC - led by London-based Kalrock Capital and UAE-based entrepreneur Murari Lal Jalan - emerged as the winning bidder under the insolvency resolution process, but the ownership transfer has been dogged by continuing differences between creditors and the consortium.
On August 28, a three-member NCLAT bench accepted the plea of the consortium to extend the payment deadline from August 31. It allowed it to deduct INR1.5 billion (USD18.1 million) from the Performance Bank Guarantee (PBG) for the payment. The consortium has committed to paying INR1 billion (USD12.1 million) by August 31 and another INR1 billion (USD12.1 million) by September 30. The remaining INR1.5 million (USD18.1 million) is to be obtained by encashing the PBG.
The consortium initially requested a 90-day extension period.
Its plea prompted legal discussions before the tribunal on whether the extension request amounted to a modification of the approved insolvency resolution plan. The Committee of Creditors (CoC) of Jet Airways had argued the PBG was a backup and objected to the bank guarantee being encashed.
On August 7, the CoC told the tribunal they might not pursue the appeal against the transfer of the airline's ownership to the JKC if it pays INR3.5 billion towards fulfilling condition precedents.
