Jet Airways Revival: Jalan-Kalrock Gets 97-day Extension To Pay Dues To SBI

The National Company Law Appellate Tribunal (NCLAT) on Friday granted the Jalan-Kalrock consortium (JKC), the successful bidder for bankrupt Jet Airways, a three-month extension (97 days) to pay a guarantee of Rs 150 core to the State Bank of India (SBI).

JKC was earlier 150 days from, 16 to May 15, to pay the dues.

NCLAT gave the order on JKC’s application to stop SBI from invoking the guarantee. The public sector lender told the tribunal in the earlier hearing that JKC had not paid dues that had a deadline of May 15.

Jet's air operator certificate (AOP)-- revalidated by India’s aviation regulator on May 20 last year--expired on Friday, indicating that the airline is unlikely to start commercial flights anytime soon. By May last year, JKC had deposited Rs 150 crore with lenders as a performance bank guarantee (PBG).

The National Company Law Tribunal (NCLT) last December asked lenders to hand over Jet Airways to the consortium. It asked the consortium to submit Rs 185 crore—as decided under the insolvency resolution plan—with lenders by May 14 this year so that ownership transfer can begin. The lenders have not received this amount as yet.

As per the resolution plan, JKC was required to deposit with lenders a PBG of Rs 150 crore in two tranches: the first of Rs 47.5 crore when a committee of creditors (lenders) approves the resolution plan and the second tranche of Rs 102.5 crore on "effective date" when all CPs (conditions precedent) were fulfilled.