Jet Airways shares surge after NCLT approved the ownership transfer to Jalan Kalrock Consortium

JET AIRWAYS

Jet Airways stock surged 14% in three trading sessions after the National Company Law Tribunal (NCLT) allowed the ownership transfer of the bankrupt airline to the winning bidder, Jalan-Kalrock Consortium (JKC).

Jet’s stock, which was trading at around INR 70 apiece on January 12, has surged to around INR 80. However, it is still down nearly 40% from its peak of INR 131 recorded last year. The Mumbai-based low-cost airline has been in the midst of a bitter fight between State Bank of India-led lenders and JKC over the past few months on whether the latter has met the conditions it had proposed to take over Jet.

ALSO READ – NCLT allows Jet Airways ownership transfer to Jalan-Kalrock consortium; gives 6 months to complete the process

The NCLT on Friday, January 13 ruled that the winning bidder can be handed over the airline and will be granted six months starting November 16, 2022, to pay back the banks that have lent the airline around INR 8,000 crore.

JET AIRWAYS
Jet Airways shares surge after NCLT approved the ownership transfer to Jalan Kalrock Consortium

As per the resolution plan, JKC should make a cash payment of INR 185 crore to financial creditors within 180 days from this effective date. The lenders, however, opposed the ruling in the same hearing and sought a two-week stay, which was declined by the court.

ALSO READ – Jalan-Kalrock Consortium asks RP not to communicate on behalf of Jet Airways

Besides the conditions being met, the lenders’ consortium had asked JKC-appointed Sanjiv Kapoor to stop using the designation of “CEO, Jet Airways” as the company has still not been transferred. The consortium, has, in turn, shot back a letter defending Kapoor. “Sanjiv Kapoor, who received necessary security clearance from the honourable Ministry of Civil Aviation, govt of India, in August 2022, is the CEO-designate for Jet Airways and thus requires no further approval from any statutory authority,” JKC said.

JET AIRWAYS A320
Jet’s stock, which was trading at around INR 70 apiece on January 12, has surged to around INR 80.

The lenders now have the right to approach the National Company Law Appellate Tribunal (NCLAT) to challenge the NCLT verdict.

ALSO READ – 4 Jet Airways aircraft seized over non-payment of gratuity

Recently, the Maharashtra government on January 17 attached four Boeing 777 aircraft belonging to Jet Airways. The attachment action was carried out by the tehsildar office in Mumbai under the provision of the Maharashtra Land Revenue Code for non-payment of gratuity to the employees.

The grounded airline’s employees have been fighting a legal battle for provident funds and gratuity. Last October the National Company Law Appellate Tribunal ruled that the successful resolution applicant Kalrock Jalan consortium was liable to pay

Responses

  1. Hello,
    Just a minor correction in the data.
    The NCLT on Friday ruled that the winning bidder can be handed over the airline and will be granted six months starting November 16, 2022* , to pay back the banks that have lent the airline around Rs 8,000 crore.

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