The National Company Law Tribunal (NCLT) has approved a resolution plan submitted by the Jalan-Kalrock consortium, allowing them to take control of Jet Airways.
Jet Airways, once India’s largest private airline, has been under the Insolvency and Bankruptcy Code (IBC) since 2019. The airline had been struggling financially for some time, and despite efforts to revive the company, it was unable to pay its debts and was forced to shut down operations in April 2019.
The Jalan-Kalrock consortium, which includes businessman Murari Lal Jalan and Dubai-based investor Florian Fritsch, submitted a resolution plan to take over the airline in August 2020. The plan was approved by the Committee of Creditors (CoC) in December 2020, and was subsequently approved by the NCLT.
The resolution plan includes a debt resolution of more than Rs. 15,000 crore and an investment of Rs. 1,500 crore to revive the airline. Under the plan, the Jalan-Kalrock consortium will acquire 51% stake in the airline, while the remaining 49% will be held by the lenders.
The approval of the resolution plan marks a significant step forward in the efforts to revive Jet Airways. The airline had been a major player in the Indian aviation industry, and its collapse had a major impact on the sector. The Jalan-Kalrock consortium has expressed its commitment to restarting operations and rebuilding the airline.
It is expected that the Jet Airways will restart its operation with a fleet of 10 aircrafts initially and will focus on domestic routes and will slowly expand to international routes.