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National Company Law Appellate Tribunal grants more time to new Jet Airways owners to pay dues

A three-member NCLAT bench accepted the plea of the Jalan-Kalrock consortium to extend the timeline and also for the adjustment of Rs 150 crore from the performance bank guarantee towards payment of Rs 350 crore

Our Bureau Mumbai Published 29.08.23, 11:19 AM
Representational image

Representational image File picture

The National Company Law Appellate Tribunal (NCLAT) on Monday gave the Jalan-Kalrock consortium time till September 30 to pay Rs 350 crore to the lenders of bankrupt Jet Airways.

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

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The consortium has submitted an undertaking before the appellate tribunal in which it had committed to pay Rs 100 crore by August 31 and another Rs 100 crore by September 30.

For the remaining Rs 150 crore, the consortium had requested the appellate tribunal to encash the performance bank guarantee submitted for that purpose.

The 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 NCLAT order is yet to be uploaded on the NCLAT website.

Earlier, the consortium was to pay Rs 350 crore to the lenders by August 31 but had sought an extension for making the payment.

The NCLAT last Monday had reserved its order.

While the consortium emerged as the winning bidder under the insolvency resolution process, the ownership transfer has been hanging fire amid continuing differences between lenders and consortiums.

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