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Kalrock-Jalan consortium receives NCLT nod to operate Jet Airways

Wednesday, 23 Jun 2021
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The Kalrock-Jalan consortium has received nod from the National Company Law Tribunal (NCLT) to operate Jet Airways again.

On 22 June 2021, NCLT cleared the resolution plan submitted by the consortium, paving the way to restart the airline that has been out of business since 2019. The consortium will now apply for the relevant government approvals before it can recommence operations.

The airline's new management will have to appoint key executives in engineering, flight safety, operations and security. It will also have to update all operations manuals and undergo a regulatory audit before securing permission to start operations.

With the passing of the resolution plan, the insolvency process of Jet has come to an end. Now a monitoring committee, comprising representatives of banks, the consortium and resolution professional Ashish Chhawchharia will oversee the functioning of the company for the next 90 days.

While the consortium will be responsible for negotiations with airports and suppliers, the committee will function as a quasi-board and look after all corporate actions and compliances.

The new board of the airline will take over on the effective date which has been set at 90 days from the passing of order. The consortium will also have to pay a performance bank guarantee of around Rs 100 crore and meet other conditions.

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