In a fresh bid to give new wings to fly to the already grounded air carrier, Jet Airways, the National Company Law Tribunal (NCLT) has published a written order approving Jalan Kalrock Consortium's resolution plan for Jet Airways. The approval of the proposed plan is subject to certain directions.
According to the tribunal, a separate order regarding the directions would be issued by the tribunal later. On June 22, the tribunal, through an oral order, cleared the consortium's plan for the bankrupt Jet Airways under the insolvency law.
In a filing to stock exchanges on Friday, Jet Airways' Resolution Professional Ashish Chhawchharia said the tribunal has published the “written order (dated June 22, 2021)” approving the resolution plan. The matter was taken up through video conferencing by the tribunal on June 22.
“Counsel for the Applicant, Successful Resolution Applicant and CoC (Committee of Creditors) are present. Mr Ashish Mehta, Counsel for DGCA and MoCA is also present. Order pronounced. IA No. 2081 of 2020 is allowed subject to certain directions, vide separate order,” NCLT order said.
While the applicant was the State Bank of India, the successful resolution application was submitted by Jalan Kalrock Consortium.
“All stakeholders are requested to note that the written order mentions that IA No. 2081 of 2020 (i.e. the interlocutory application relating to the approval of the resolution plan) is allowed subject to certain directions which will be issued vide a separate order,” the filing said.
A separate order containing such directions has not been made available yet, it added. On June 22, the tribunal, while approving the resolution plan, also made it clear that it will not give any direction on the issue of airport slots for the airline, citing that the matter will be handled by the government or the appropriate authority concerned.
Financial distress forced Jet Airways, which flew for more than two decades, to suspend operations on April 17, 2019, and a consortium of lenders, led by the State Bank of India (SBI), filed an insolvency petition in June 2019, to recover outstanding dues worth over Rs 8,000 crore.