Supreme Court to rule on Jet Airways ownership transfer
The Supreme Court is set to rule on Thursday regarding the lenders’ petition challenging the transfer of Jet Airways ownership to the Jalan Kalrock Consortium (JKC). The Committee of Creditors (CoC), led by the State Bank of India, has raised concerns about the proposed revival plan, arguing that it does not serve the lenders’ interests. The CoC has also contested the NCLAT’s decision to uphold the resolution plan.
Earlier this year, the Supreme Court had instructed JKC, the winning bidder, to deposit Rs 150 crore in an escrow account shared with SBI and JKC. The court warned that failure to comply would lead to legal consequences. The NCLAT was given a deadline of March 2024 to decide on the lenders’ plea against JKC’s ownership transfer.
As part of the resolution plan, JKC committed to infusing Rs 350 crore in equity to take over the airline. The NCLAT allowed Rs 150 crore from the Performance Bank Guarantee (PBG) to be counted towards this amount. JKC also promised payments of Rs 100 crore by August 31, 2020, and another Rs 100 crore by September 30, 2023.
Jet Airways, once a leading airline in India, entered insolvency proceedings under the Insolvency and Bankruptcy Code (IBC) in June 2019 due to severe financial troubles.
