Queency Jain –
The Mumbai Bench of the National Company Law Tribunal has approved the resolution plan of Kalrock Capital and Murari Lal Jalan for the revival of Jet Airways and has directed the successful bidder to get the approvals and licenses from the authorities within 90 days of the order.
Though the advocates on the behalf of the Director-General of Civil Aviation and Ministry of Civil Aviation sought to stay the implementation order by 8 weeks, the same was rejected by the tribunal.
In June 2019, Jet Airways was admitted for the resolution process after it failed to raise money to keep itself afloat.
The Bankruptcy Court, while hearing the matter, sought clarification from MoCA about the availability of the slots to the company and to inform the National Company Law Tribunal regarding the status of the erstwhile slots of Jet Airways.
As per the resolution plan approved by the bench, the successful bidder has proposed a total cash flow of Rs. 1375 crore which in return will help in the revival of the company.
The plan is set to provide Rs. 113 crore to workmen and employees against their claim of Rs. 1200 crore in 180 days while Rs. 1010 Crore will be provided to financial creditors against their claim of Rs. 7454 crore in 5 years.
The plan is all set to change the financial shares of the airline wherein Kalrock-Jalan together will hold 89.79% shares of the airline while 9.50 will be for financial creditors. Though earlier promoter’s shareholding comes to zero, public shareholding will also decrease from 25 to 0.21%.
