regular-article-logo Tuesday, 16 July 2024

Jalan Kalrock Consortium invests additional Rs 100 crore into cash-strapped Jet Airways

New promoters now expect to resume operations of the airline in 2024

Our Special Correspondent Mumbai Published 30.09.23, 10:47 AM
Representational image.

Representational image. File photo

The Jalan Kalrock Consortium (JKC) which emerged victorious in reviving Jet Airways has cleared all its dues to lenders.

JKC on Friday said it has infused an additional Rs 100 crore into Jet Airways, thereby fulfilling its total financial commitment of Rs 350 crore as part of a court-approved resolution plan.


The new promoters now expect to resume operations of the airline in 2024.

Shares of the airline were locked in at the 5 per cent upper circuit at Rs 55.91 following the announcement.

Jet Airways’s operations have been suspended since April 17, 2019.

“Kalrock Consortium (JKC) on Friday completed an additional infusion of 100 crore, reaffirming its unwavering commitment to a successful resurgence of Jet Airways,” a statement from the consortium said.

It added that following this infusion, it has now fulfilled the total financial commitment of Rs 350 crore equity as per the court-approved resolution plan.

“All commitments by JKC now stand fulfilled to take control of the iconic airline’’. Jalan Kalrock added that the consortium’s strategy to revive the airline remains unaltered.

“The new promoters are determined to re-establish the operations of the airline up and running in 2024.” Announcements regarding the launch date of Jet Airways will be made in the coming weeks.

In late August, the consortium had deposited Rs 100 crore in Jet Airways.

In that month, the National Company Law Appellate Tribunal (NCLAT) had given the consortium time till September 30 for the payment of Rs 350 crore to the lenders of the carrier.

A three-member NCLAT bench had accepted the plea of JKC to extend the timeline and also for adjustment of Rs 150 crore from the performance bank guarantee (PBG) towards the payment of Rs 350 crore.

It had submitted an undertaking before the appellate tribunal, in which there was a commitment to pay Rs 100 crore by August 31, 2023 and another Rs 100 crore by September 30, 2023.

For the rest of Rs 150 crore, the consortium had requested the appellate tribunal to encash the bank guarantees.

Jalan-Kalrock Consortium had emerged as the winning bidder for the airline, which stopped flying in April 2019 and later underwent an insolvency resolution process.

The insolvency resolution proceedings against the carrier began in June 2019.

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