+
Winners of Jet Air bid seek SC approval for revised payment plan
AVIATION & AIRPORTS

Winners of Jet Air bid seek SC approval for revised payment plan

The Jalan-Kalrock Consortium (JKC), the entity that successfully emerged as the resolution applicant for Jet Airways, has appealed to the Supreme Court to permit the substitution of a Rs 1.5 billion performance bank guarantee with a new financial instrument. The consortium conveyed to the court in its petition that upon the release of the bank guarantee by the lenders, led by the State Bank of India, it would deposit Rs 1.5 billion within seven days.

JKC approached the apex court subsequent to its directive on January 17, instructing the winning bidders to pay Rs 1.5 billion by January 31, under the threat of "serious consequences."

Sources indicated that the lenders have rejected the offer, expressing frustration with the delaying tactics employed by the consortium.

A person familiar with the deliberations stated, "From the lenders' perspective, we are merely observers in this case now, and we will adhere to what the Supreme Court decides. The facts are evident to everyone, and there is nothing the banks can do."

The consortium, consisting of Murari Lal Jalan based in Dubai and the UK's Kalrock Capital, along with the committee of creditors led by the State Bank, comprising 11 banks, has enlisted lawyers to convince the court to accept the new plan, citing funding from Dubai.

Due to both promoters being non-resident Indians (NRIs), obtaining permission from the Reserve Bank of India (RBI) takes time, governed by the Foreign Exchange Management Act. The process of securing a fresh guarantee was delayed by bank holidays. A lawyer stated, "This payment plan will enable us to comply with the Supreme Court's directives, ensuring that the consortium already possesses Rs 1.5 billion in India, which can be immediately deposited in the share application of Jet Airways."

Despite an extended legal battle, the Jalan-Kalrock consortium remains committed to reviving the airline, as explained by the lawyer. He highlighted the lenders' failure to fulfill the conditions outlined in the resolution despite multiple reminders. Seeking regulatory approval for director appointments from the registrar of companies has been a time-consuming process, hindered by delays.

The consortium, victorious in the bid to operate the airline through a bankruptcy process led by the State Bank of India, has faced challenges in taking ownership of the airline. The consortium has incurred expenses exceeding ?300 crores for hiring executives to conduct probing flights, an essential element in maintaining the air operator's certificate's validity.

The Jalan-Kalrock Consortium (JKC), the entity that successfully emerged as the resolution applicant for Jet Airways, has appealed to the Supreme Court to permit the substitution of a Rs 1.5 billion performance bank guarantee with a new financial instrument. The consortium conveyed to the court in its petition that upon the release of the bank guarantee by the lenders, led by the State Bank of India, it would deposit Rs 1.5 billion within seven days. JKC approached the apex court subsequent to its directive on January 17, instructing the winning bidders to pay Rs 1.5 billion by January 31, under the threat of serious consequences. Sources indicated that the lenders have rejected the offer, expressing frustration with the delaying tactics employed by the consortium. A person familiar with the deliberations stated, From the lenders' perspective, we are merely observers in this case now, and we will adhere to what the Supreme Court decides. The facts are evident to everyone, and there is nothing the banks can do. The consortium, consisting of Murari Lal Jalan based in Dubai and the UK's Kalrock Capital, along with the committee of creditors led by the State Bank, comprising 11 banks, has enlisted lawyers to convince the court to accept the new plan, citing funding from Dubai. Due to both promoters being non-resident Indians (NRIs), obtaining permission from the Reserve Bank of India (RBI) takes time, governed by the Foreign Exchange Management Act. The process of securing a fresh guarantee was delayed by bank holidays. A lawyer stated, This payment plan will enable us to comply with the Supreme Court's directives, ensuring that the consortium already possesses Rs 1.5 billion in India, which can be immediately deposited in the share application of Jet Airways. Despite an extended legal battle, the Jalan-Kalrock consortium remains committed to reviving the airline, as explained by the lawyer. He highlighted the lenders' failure to fulfill the conditions outlined in the resolution despite multiple reminders. Seeking regulatory approval for director appointments from the registrar of companies has been a time-consuming process, hindered by delays. The consortium, victorious in the bid to operate the airline through a bankruptcy process led by the State Bank of India, has faced challenges in taking ownership of the airline. The consortium has incurred expenses exceeding ?300 crores for hiring executives to conduct probing flights, an essential element in maintaining the air operator's certificate's validity.

Related Stories

Gold Stories

Next Story
Infrastructure Transport

97 Per Cent Of Rongjeng-Mangsang-Adokgre Road Nears Completion

Deputy Chief Minister in-charge of public works Prestone Tynsong said in Shillong on 26 August that 97 per cent physical progress had been achieved on the ongoing Rongjeng-Mangsang-Adokgre road being constructed under the Non-Lapsable Central Pool of Resources (NLCPR). He noted the project was sanctioned in 2017 and that the stipulated time for completion had been 24 months from issue of the final work order. The deputy chief minister informed the assembly that the government had decided to include the remaining work under a World Bank project. In reply to a query from Rongjeng MLA Jim M Sangm..

Next Story
Infrastructure Transport

First TBM Starts Digging Five Point Three Kilometre Tunnel Under SGNP

The Goregaon-Mulund Link Road (GMLR) Phase three (B) project has reached a key milestone as the first tunnel boring machine (TBM) began excavation of the first of two tunnels beneath the Sanjay Gandhi National Park (SGNP). The machine, named Tulsi, started cutting a five point three kilometre bore that will link Dadasaheb Phalke Chitranagari in Goregaon East with Amar Nagar in Mulund West. Officials issued a statement noting the commencement of tunnelling work under the protected green belt. The twin tunnels are being constructed using mechanised tunnelling methods that aim to limit surface di..

Next Story
Infrastructure Transport

UP Approves Two Expressways And Rs 240 bn Infrastructure Push

The Uttar Pradesh Cabinet approved a series of infrastructure and industrial investment proposals totalling Rs 240 billion (Rs 240 bn), including two major expressway projects, a manufacturing and logistics cluster in Sultanpur and incentives for 11 industrial projects across the state. The decisions, taken at a meeting chaired by Chief Minister Yogi Adityanath, underline the state government’s focus on expanding road connectivity around emerging industrial hubs while attracting manufacturing investment to districts beyond major urban centres. The approvals cover both greenfield expressway c..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code