Lenders impeding Jet Airways revival: Jalan Kalrock Consortium to NCLAT

The Jalan Kalrock Consortium (JKC), the successful bidder for Jet Airways, conveyed to the National Company Law Appellate Tribunal (NCLAT) on Friday that while they were prepared for a revival, the lenders to the airline were creating obstructions by filing cases across multiple forums.

JKC said that it possessed the Air Operator's Certificate (AOC) for 2022-23, but was unable to commence operations because the Committee of Creditors (CoC) raised objections to its ownership at various stages. A CoC is a collective of lenders representing the interests of stakeholders in a company facing insolvency or bankruptcy.

JKC also raised concerns that the slots allocated to it to begin operations would be reassigned to others if it did not commence flights soon.

The NCLAT is set to revisit the matter on 7 August.

Earlier, N Venkatraman, the Additional Solicitor General (ASG) representing the CoC, stated that the consortium failed to fulfil its commitment to inject funds into the airline, despite receiving multiple extensions from tribunals. He added that if the CoC aimed to recover any of its outstanding dues, the company would have to undergo liquidation – a process involving the sale of assets to repay lenders and dissolve a business.

The ASG further noted that the AOC's validity would soon expire, creating doubts over whether the consortium could start operations.

State Bank of India, one of the lenders, lodged an appeal with the NCLAT against the National Company Law Tribunal (NCLT) order endorsing the Jet revival plan. SBI claimed that JKC had not infused any funds into the airline and argued that the revival plan was not viable.

Jet Airways lenders urged the Supreme Court on 10 July to commence the winding-up process for the grounded airline, stating that the resolution plan approved by the NCLT was unfeasible.