Jet Airways lenders may sell 11 aircraft in absence of resolution: Report

Lenders said that even one-and-a-half years after the resolution plan was approved by the National Company Law Tribunal (NCLT), the Jalan-Kalrock consortium has failed to pay the required amount

The lenders of Jet Airways may sell 11 planes of the carrier as the execution of the resolution plan is delayed. They said that even one-and-a-half years after the resolution plan was approved by the National Company Law Tribunal (NCLT), the Jalan-Kalrock consortium has failed to pay the required amount, the Economic Times (ET) reported. 

 

"...banks cannot transfer the company till we receive the money, and the way things are, it seems that the execution of the deal will not happen soon. Meanwhile, the 11 planes we have in our possession are also losing value. Maybe the time has come to relook at selling those," a person aware of the matter told ET. 

 

The NCLT approval for the resolution came on June 2021.

 

On the other hand, the consortium is blaming the banks for the delay. 

 

"Though these were preconditions for the plan implementation, banks had agreed to not oppose it in court if the consortium sought relief. But instead, Jalan-Kalrock has started blaming banks for the delay, which has raised doubts on their intentions," the person mentioned above mentioned. 

 

On November 18, the airlines announced a salary reduction for various staff members. 

 

The measures, which will be effective from December 1, were revealed hours after the winning bidder Jalan-Kalrock Consortium (JKC), said it might take "difficult" near-term decisions to manage cashflows.

 

The pay cut would be up to 50 per cent, and the quantum would be higher for the CEO and CFO. The temporary pay cuts and Leave Without Pay (LWP) for the affected staff would be effective from December 1, a source close to the development said.

 

In a series of tweets, Jet Airways CEO Sanjiv Kapoor said less than 10 per cent of the total staff would be on temporary Leave Without Pay and one-third would be on temporary pay reduction.

 

(With agency inputs)