Jet Airways lenders approve plan to revive the company

A day after the UK-based Karlock Capital and UAE-based Muraru Lal Jalan won the bid to buy the cash-strapped airlines, the Committee-of-Creditors (CoC) on Saturday approved the resolution offered by the new owners to revive the company.

New Delhi: The committee of creditors for the Jet Airways approved the resolution offered by a consortium comprising of UK-based Karlock Capital and UAE-based Murari Lal Jalan to revive the bankrupt airline.

"The e-voting concluded today, i.e. October 17, 2020, and the resolution plan submitted by Mr Murari Lal Jalan and Mr Florian Fritsch has been duly approved by the CoC under section 30(4) of the Code as the successful resolution plan," Ashish Chhawchharia, the resolution professional appointed by the lenders of the airline said in a stock exchange notification.

"The Resolution Professional is in the process of filing an application in accordance with Section 30(6) of the Code for approval of the said resolution plan by the Hon'ble NCLT and intimation of the same shall be given to the members as required," he added in the statement.

Jet Airways, one of India’s biggest private airline, hasn’t flown since 17 April 2019 after it grounded flights due to an acute cash crunch. The airline has been undergoing insolvency proceedings at the National Company Law Tribunal (NCLT) since June 20, 2019.

According to the Insolvency and Bankruptcy Code, the company had to secure at least 66 per cent of the votes of the lenders, who are the part of the committee of creditors.

Now, after the approval of the resolution plan by the CoC, the resolution professional will move an application in the NCLT for its approval. In the last stage, the company would need to apply to the Civil Aviation Ministry and Corporate Affairs Ministry for their final approvals

The new owner of the airline is set to face several challenges to turn around Jet Airways, which include its massive debt, dues to employees, airports, ground handlers and others.