Jet Airways’ Winning Bidder Gets Extension To Repay Rs 350 Crore To Lenders

Jet Airways stopped flying in April, 2019 (Representational)

New Delhi:

The National Company Law Appellate Tribunal (NCLAT) on Monday extended the time till September 30 for the Jalan-Kalrock Consortium to pay Rs 350 crore to the lenders of the now-bankrupt Jet Airways.

A three-member NCLAT bench accepted the consortium’s request to extend the timeline and an adjustment of Rs 150 crore from the performance bank guarantee (PBG) towards the payment of Rs 350 crore.

The consortium submitted an undertaking before the appellate tribunal, committing to pay Rs 100 crore by August 31, 2023, and another Rs 100 crore by September 30, 2023.

For the remaining Rs 150 crore, the consortium requested the appellate tribunal to encash the PBG submitted for that purpose.

The Jalan-Kalrock Consortium emerged as the winning bidder for the airline, which stopped flying in April 2019 and later underwent an insolvency resolution process.

Earlier, the consortium was to pay Rs 350 crore to the lenders by August 31 but sought an extension for the payment.

While the consortium emerged as the winning bidder under the insolvency resolution process, the ownership transfer has been hanging fire amid continuing differences between lenders and consortiums.

The NCLAT order is yet to be uploaded on its website. Last Monday, the tribunal had reserved its order.

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