A committee of creditors (CoC) claims the would-be new owners of Jet Airways (Mumbai International) have not paid it any money, despite India's insolvency tribunal giving the group multiple extensions to make the promised payments. The committee also claims it is spending money out of its own pocket to maintain what remains of the semi-defunct carrier.

India's Economic Times reports on the CoC's claims. It comes as a key party in the buying group, the Jalan-Kalrock Consortium (JKC), lost a bid in a Liechtenstein court last week to have his assets unfrozen while a fraud and money laundering investigation continues. Florian Fritsch, owner of investment company Kalrock Capital, has teamed up with UAE-based non-resident Indian Murari Lal Jalan to buy and relaunch Jet Airways. However, since the National Company Law Tribunal (NCLT) approved that outcome , the ownership handover has floundered as the relationship between the JKC and CoC has become increasingly acrimonious.

Jet Airways ceased flying in April 2019, unable to pay for its day-to-day expenses such as fuel. After several false starts, almost 18 months later, receivers settled on JKC as the preferred buyer, after they submitted a bid that was supported by 99% of the airline's creditors. The bid included an offer to recapitalise the airline and pay creditors a fraction of the INR150 billion (USD1.8 billion) they were owed.

In June 2022, still with creditor backing, the NCLT approved the sale and stamped a resolution plan. However, JKC almost immediately faced challenges, including disputes with creditors and former employee groups. The resolution plan included a timeline for making some payments to creditor groups, including paying banks INR3.8 billion (USD45.7 million) in instalments and giving them a 9.5% stake in the airline. Jet Airways employees would receive, through a welfare trust, a 0.5% stake in the airline and a 76% stake in groundhandling subsidiary Airjet Ground Services.

The CoC now claims it spends nearly INR230 million (USD2.8 million) each month to cover Jet Airways' monthly expenses and that JKC has paid none of the promised money. The consortium disputes this, saying they have paid INR2.5 billion (USD30 million) since that June 2022 tribunal decision, including paying INR1 billion (USD12 million) immediately after the tribunal's decision.

More recently, ch-aviation reported that the JKC had paid lenders INR1 billion (USD12 million), just days after the appellate bench of the NCLT gave it until September 30, 2023, to pay lenders INR3.5 billion (USD42.1 million) and get the grounded airline's resolution plan back on track.

“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 on August 31.

More than two years after the NCLT approved JKC's acquisition of Jet Airways, the handover remains incomplete and the latest round of the dispute returns to the NCLT on October 3.