Jet Airways lenders approve Kalrock Capital-Murari Jalan's resolution plan

Jet Airways lenders approve Kalrock Capital Murari Jalan's resolution plan

Jet Airways' Lenders Approve Resolution Plan for Bankrupt Firm

The plan submitted by a consortium of London-based Kalrock Capital and UAE-based businessman Murari Lal Jalan comes after months of talks over the airline's future and was confirmed in a regulatory filing, which gave no details of the deal.

A panel of creditors to Jet Airways India Ltd. approved a resolution plan for the bankrupt airline, bringing a 16-month long process to recover dues to lenders closer to completion.

The resolution plans of both bidders have also not been made public, but speculative news reports said the Kalrock consortium had offered a total payout of around Rs 866 crore, which included a Rs 380 crore payout to financial creditors and FSTC consortium's bid offer was pegged at approximately Rs 770 crore.

Jet, which operated more than 120 planes serving dozens of domestic destinations and global hubs, was forced in April 2019 to ground all flights.

The other bidder was a consortium comprising Haryana-based Flight Simulation Technique Centre, Mumbai-based Big Charter and Abu Dhabi's Imperial Capital Investments.

"The Resolution Professional is in the process of filing an application in accordance with Section 30 (6) of the Code for approval of the said resolution plan by the Hon'ble NCLT and intimation of the same shall be given to the members as required", he further said in the filing.

Since its operations were halted the airline and its lenders had been looking for suitors.

Jet Airways, which stopped commercial operations on April 18, 2019, went into insolvency under the IBC on June 20, 2019, after a petition filed by lead lender State Bank of India was approved by the Mumbai bench of the National Company Law Tribunal (NCLT).

Jet Airways shares rose 4.97% on the BSE to Rs 40.15 per share on Friday, amid the impending announcement.

Meanwhile, the amount claimed by creditors of Jet Airways crossed Rs 40,000 crore. 80 crore has been admitted. 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.

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