Voting on Jet Airways revival underway, decision after October 16

Kalrock Capital is the favourite to win the bid with social media also abuzz about lenders choosing it

Representative image
Representative image

Eighteen months after it was grounded, Jet Airways is all set for a comeback. Lenders to Jet have begun voting to choose its new owner. So far, two banks have voted on the resolution plans and the process is expected to continue till October 16.

Kalrock Capital-Murari Lal Jalan combine has emerged as the frontrunner. A consortium of Imperial Capital and FSTC is the other bidder.

Kalrock Capital, a financial advisory and asset management company, was founded by European entrepreneur Florian Fritsch, who set up his first company at the age of 16. Over the past two decades, he has invested in real estate, renewable energy, and electro mobility, including in Tesla in 2008.

While social media was abuzz about Kalrock Capital winning the bid, Jet informed the stock exchange on Thursday the news was misleading. Ashish Chhawchharia, Jet resolution professional (RP), said the voting process was still underway. The UK-based asset management company, too, denied issuing any statement about it winning the bid.

The Kalrock-Jalan combine is pitted against Imperial Capital-FSTC consortium, which is also setting up another airline in India called Fly Big. The start-up airline hopes to start operations on Udan and non-Udan routes from next month.

"We are hopeful about our Jet proposal, but it is all up to lenders," said Biraja Jena, chairman of Imperial Capital Investments. 

For any revival plan to pass muster, it will have to secure 66 per cent of the votes of the lenders, who are part of the committee of creditors. Once a resolution plan is approved, the RP will move an application in the National Company Law Tribunal for its approval.

Jet operated its last flight between Amritsar and Mumbai on April 17, 2019. It has been under insolvency since June last with admitted claims of Rs 1,572.30 crore. 

The amount of claims received is to the tune of Rs 37,543 crore, of which financial creditors have claimed Rs 11,290 crore.