Lenders Led state Bank of India ,State Bank Of India) approved the resolution plan by the consortium in October 2020. However, the implementation of the plan was conditional on the verification of Jet’s air operator’s permit, approval of the business plan and most importantly, the approval to reallocate all suspended slots, including bilateral ones. Air traffic rights for Jet.
“Due to the delay in implementation of the scheme, the lenders have agreed not to oppose any petition by the consortium in the NCLT to waive these conditions,” said a person aware of the developments. “However, completion of the deal still depends on payments to lenders without which control will not be transferred.”
The 15-month delay after the National Company Law Tribunal (NCLT) cleared the plan has made lenders wary of the consortium’s promises.
“Ultimately, it’s about money entering our accounts. Until that happens, this transaction won’t happen,” said another person familiar with the conversation. “Jalan-Kalrock has never denied transferring the funds, but the fact that it has taken so long casts doubt on their intentions.”
As per the resolution plan, the consortium offered to pay Rs 380 crore in installments to the lenders and 9.5% stake in the airline company. The National Company Law Tribunal (NCLT) had approved its plan in June last year.
A person close to the Kalrock-Jalan consortium has agreed to start repaying lenders and the first tranche “will be released soon”, without elaborating on the amount or time frame.
Grant Thornton-backed resolution professional Ashish Chhawcha has accepted ₹7,453 crore in claims from financial creditors, for which the consortium has offered a total payment of ₹1,010 crore over five years, including ₹380 crore in installments, from future sales of assets. plus and 9.5. % stake in the airline company.
But the request by the consortium to waive the precondition has raised even more doubts.
A lawyer with knowledge of the matter said, “A court order in April allowed extension of the effective date of the resolution plan, citing Jet’s counsel that one of the conditions – the air operator Permit – was fulfilled.” “They included securing international traffic rights and domestic slots. What is jet Are you talking about now?”
ET has seen the copy of the order.
The lawyer, who has followed the matter closely, said the extended effective date of the resolution plan – May 25 – has already expired.
“Lenders have allowed the deadline to expire in the hope that they will get their money back. If they don’t soon, they will certainly take action,” he said.
Jet’s lenders are adamant that the airline cannot buy or lease aircraft until ownership is transferred; In other words, until their dues are settled.
The first person mentioned above said, “A timeline for payment of dues is crucial for Jet’s recovery. The lenders have not received anything from the consortium so far. Frankly, the ball is in their court.”
Until the debt resolution plan deadline or effective date is provided, the ownership of Jet cannot be transferred to the consortium, the lenders said.
Meanwhile, the airline has missed its internal deadline of late September to start selling tickets.