The National Company Law Appellate Tribunal granted approval on Tuesday for the transfer of control of Jet Airways (India) Ltd. to the Jalan Kalrock Consortium.
This decision comes after the committee of creditors, led by the State Bank of India, filed an appeal against the National Company Law Tribunal's order approving the resolution plan submitted by Murari Lal Jalan and Kalrock Capital.
In addition, the SBI's appeal has been disposed of by the tribunal.
The first crucial step in the outlined plan involves the lenders creating security on immovable properties as proposed by the consortium within 30 days. Upon successful creation of the security on the specified immovable properties, the lenders are then authorised to adjust a performance bank guarantee of Rs 150 crore.
This adjustment is directed towards offsetting the Rs 150 crore payment owed by the consortium. Essentially, the collateralised properties serve as a form of guarantee to facilitate this financial adjustment, streamlining the settlement process between the lenders and JKC.
In the subsequent phase, the lenders are instructed to issue shares of Jet Airways to the successful resolution applicant. Following the handover of Jet Airways, both the consortium and the lenders are mandated to finalise and execute all payments to creditors in accordance with the previously approved resolution plan.
Upon the successful completion of the aforementioned steps, Jet Airways is poised to resume its business operations.
The lenders had earlier claimed that the consortium did not contribute any funds to Jet Airways. They reached an agreement in which the consortium agreed to provide a bank guarantee of Rs 150 crore to the lenders, among other funds. This bank guarantee served as a form of assurance or collateral, securing the lenders' interests in the financial arrangement.
Now, the recent decision by the bench specifies that this bank guarantee of Rs 150 crore will be adjusted within 30 days.
On the BSE, Jet Airways' shares rose as much as 4.98% during the day to Rs 42.79 apiece, the highest level since March 6. It locked in the upper circuit at close, compared to the 0.04% advance in the benchmark Sensex.
The share price has declined by 37.51% in the last 12 months. The total traded volume so far in the day stood at 1.4 times its 30-day average. The relative strength index was 28.91.
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