Jet Airways spurts as lenders OK resolution plan

Jet Airways (India) hit an upper circuit of 5% at Rs 42.15 after the company's lenders approved the resolution plan submitted by UK-based Kalrock Capital and UAE-based entrepreneur Murari Lal Jalan to revive and operate the airline.

The 17th Committee of Creditors (CoC) meeting of Jet Airways (India) was held on 3 October 2020 and the Resolution Professional submitted the IBC (Insolvency and Bankruptcy Code) compliant resolution plans for the consideration of the CoC members.

The final resolution plans submitted by the two resolution applicants (RAs) were discussed and deliberated by the CoC members. The resolution plans submitted by both the RAs were put for e-voting for approval by the CoC members.

The e-voting concluded on 17 October 2020 and the resolution plan submitted by Murari Lal Jalan and Florian Fritsch was duly approved by the CoC. The resolution professional is in the process of filing an application for approval of the said resolution plan by the National Company Law Tribunal and intimation of the same shall be given to the members as required.

As per media reports, the Kalrock Capital-Murari Lal Jalan consortium has proposed to re-launch Jet Airways as a full-service carrier, with an initial investment of Rs 1,000 crore. It has reportedly initiated discussions with lessors and international airlines for contracts and partnerships.

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.

The air carrier reported a standalone net loss of Rs 5,535.75 crore in the year ended March 2019 (FY19), higher than net loss of Rs 767.62 crore in the year ended March 2018 (FY18). Total income declined 2.7% to Rs 23,314.11 crore in FY19 from Rs 23,958.37 crore in FY18.

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