The lenders of beleaguered airline Jet Airways, which shut down its operations in April last year, have approved a plan submitted by United Kingdom-based Kalrock Capital and United Arab Emirates-based entrepreneur Murari Lal Jalan to revive and operate the airline, The Indian Express reported on Sunday. The airline will now be controlled by Kalrock and Jalan.
“The e-voting concluded today, i.e., October 17, 2020 and the resolution plan submitted by Murari Lal Jalan and Florian Fritsch have been duly approved by the CoC [Committee of Creditors]...as the successful resolution plan,” Ashish Chhawchharia, the resolution professional appointed by the lenders of the airline said in a stock exchange filing. Chhawchharia said he is the process of filing an application for approval of the resolution plan by the National Company Law Tribunal.
Jet Airways shares rose 4.97% on the BSE to Rs 40.15 per share on Friday, amid the impending announcement.
Jet Airways owes its creditors an amount of Rs Rs 40,259 crore as of September 25, out of which the company has admitted claims worth Rs 15,525 crore. While financial creditors have claimed Rs 11,345 crore from the defunct airline, operational creditors, including workmen and employees have claimed Rs 27,719 crore, The Indian Express reported.
In June last year, Jet Airways (India) Ltd was referred to the National Company Law Tribunal for bankruptcy proceedings. The decision was taken after the company’s lenders were unable to find a suitable investor and received only a conditional bid. Jet first defaulted on loan repayment in January 2019.
The Enforcement Directorate in March this year registered a case of Foreign Exchange Management Act violations against Jet Airways founder Naresh Goyal and Jet Airways. The Enforcement Directorate questioned Goyal at its office in Mumbai and then took him to his residence to carry out searches.
Naresh Goyal and his wife Anita Goyal resigned from the airline’s board of directors in March 2019. On April 17 that year, the carrier decided to temporarily suspend all domestic and international operations. The decision was taken after its lenders declined to provide emergency funds.