Jet Airways posts Q4 net loss of Rs 107 cr; NCLT approves resolution

Jet Airways (India) recorded a net loss of Rs 107.01 crore in Q4 FY21 compared with net loss of Rs 964.97 crore in Q4 FY20.

Total income rose 44% to Rs 17.73 crore in Q4 FY21 over Q4 FY20. The company announced its quarterly results after market hours yesterday, 30 June 2021.

For the year ended March 2021 (FY21), the company posted a net loss of Rs 220.22 crore compared with loss of Rs 2,114.51 crore in FY20. Total income fell 1.2% to Rs 349.96 crore in FY21 over FY20.

National Company Law Tribunal (NCLT) approved Jalan Kalrock Consortium's resolution plan for the company. By the order pronounced orally on June 22, 2021, the Mumbai bench of the National Company Law Tribunal approved the Resolution Plan submitted by the Resolution Applicant for the corporate insolvency resolution of the Company under Section 31 of the Code," the aviation company said in a statement made on 22 June.

The SRA (Kalrock-Jalan) clarified that, for every 100 existing shares held by the public shareholders, they will be entitled to 1 (one) share in Jet 2.0, post the re-constitution of share capital, the NCLT document showed.

According to the debt resolution plan approved by the NCLT, equity shares held by the former promoters, Etihad and financial institution, and all of the preference shares held by the former promoters and Etihad shall stand fully extinguished. Kalrock Jalan has proposed to pay a fixed sum of Rs 10,000 to the existing shareholders of the airline other than public shareholders.

Kalrock-Jalan will invest a maximum sum of Rs 600 crore in the equity of the airline which will give them 89.79% stake in the company. Public shareholding will be reduced to about 0.21%.

However, the new owners will have to ensure that the public shareholding is restored to at least of 10% within a maximum period of 18 months and subsequently to 25% within a maximum period of three years. "The SRA proposes to restore the public shareholding in the corporate debtor through the issuance of fresh shares of the corporate debtor to the public, at market price, by way of a FPO, which process shall be carried out in compliance with applicable laws," NCLT said.

Jet Airways is debt-ridden non-operational airline company. The airline had grounded its operations in April 2019, after it ran out of money to meet its debt repayment obligations. It was admitted for insolvency on 20 June 2019, after lenders failed to sell the grounded airline.

In October 2020, the Committee of Creditors (CoC) of Jet Airways had approved the resolution plan submitted by a consortium of UK's Kalrock Capital and UAE-based entrepreneur Murari Lal Jalan.

Shares of Jet Airways (India) hit a lower circuit of 5% at Rs 126.45 on BSE.

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