Conflict Between Jet Airways Owners and Creditors over the Company’s Recovery Plan
After the National Company Law Tribunal (NCLT) accepted a reorganisation plan in June, Jet was expected to start operating again in the first quarter of 2022 under its new owners. However, tensions between the new owners, a group that includes tycoon Murari Lal Jala of the UAE and London-based Kalrock Capital, and its lenders run the risk of thwarting Jet's revival.
Highlights
- Jet, once the largest private airline in India, stopped operating in April 2019 after running out of money.
- Creditors who owed the company about 180 billion rupees brought it before the bankruptcy court.
- The resolution plan was accepted by the bankruptcy court and was binding on all parties concerned
The future of Jet Airways is uncertain since its creditors and new owners cannot agree on a plan to save the Indian airline from bankruptcy. If a crucial court hearing on Tuesday ends without a resolution, creditors may contact India’s aviation ministry to request permission to liquidate Jet’s assets.
“There are concerns the resolution plan may fall apart so we are looking to see if we can at least get something out of this deal via the liquidation route,” the banker, who has direct knowledge of the matter, told Reuters on Monday.
Read More: Jet Airways to Start Commercial Operations From September 2022
Jet Airways, once the largest private airline in India, stopped operating in April 2019 after running out of money. Creditors who were owed about 180 billion rupees, brought the airline before the bankruptcy court.
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