Jet Airways collectors on Monday told the Supreme Court that the Jalan-Kalrock resolution plan permitted by the National Company Law Tribunal (NCLT) is not workable. They known as for the airline to be wound up
The. insolvency process began in June 2019 and the NCLT permitted a resolution plan submitted by the Jalan-Kalrock Consortium on June 22, 2021. The plan would see the consortium of Jalan-Fritsch take over Jet Airways and inject $13. billion into the airline
However,. the collectors have challenged the plan in the Supreme Court. They argue that the plan is not reasonable to all of the creditors, and that it would not be able to revive the airline
The. Additional Solicitor General (ASG) N Venkatraman told the Supreme Court on July 10 that not even a single penny has been paid to lenders or infused in the debt-laden airline. On the contrary, the lenders have infused public dollars of around Rs four hundred crore, together with airport dues
The. ASG was arguing on behalf of the resolution specialist (RP) of Jet Airways. The RP has challenged the resolution plan of the Jalan-Fritsch consortium in the Supreme Court
The. ASG said that the resolution plan is not feasible and that it would not be able to revive the airline. He said that the plan would not provide sufficient dollars to pay off all of the airline’s debts, and that it would not be able to entice new investors
ASG. further added that the DGCA was not prepared to renew Jet Airways’ Air Operator’s Certificate (AOC), which expired in May. The AOC is a license issued by the DGCA that allows an airline to function flights
The. Jalan-Kalrock consortium had not met its funds infusion target, and it was getting repeated extensions from the tribunals. The creditors’ committee (CoC) had said that the firm would have to go into liquidation if it have been to recover any of its dues
The. Supreme Court has listed the next hearing in two weeks. The courtroom has requested the Jalan-Kalrock consortium to respond to the allegations made by the CoC
Jet. Airways stopped flying in April 2019 after working into monetary difficulties. The airline was then put underneath the insolvency resolution process, and the Jalan-Kalrock consortium emerged as the winning bidder in June 2021. However, ownership transfer has been hanging fire amid continuing differences between the lenders and the consortium.
