The Kalrock Capital-Murari Lal Jalan consortium has won the bid for Jet Airways. This has come as a huge relief as the airline has been struggling after being grounded since April 2019.
Jet Airways was in debt of about INR 8,000 crore
It also faces claims of around INR 40,000 crore. This includes the salary arrears of employees.
Manoj Madnani, Board Member, Kalrock Capital, said, I want to thank the CoC and the RP for managing the insolvency process. We look forward to engaging with the Jet Airways stakeholders, and bringing back the glory and legacy of the airline.”
According to reports, it is not yet clear the number of combined votes this deal got from the lenders. However, it did require at least 66 percent votes for the bid to come through.
Ashish Chhawchharia, Resolution Professional, said, “The e-voting concluded on October 17, and the resolution plan submitted by Murari Jalan and Florian Fritsch has been duly approved by the CoC.”
Fritsch is the founder of Kalrock Capital.
He added, “The resolution professional is in the process of filing an application in accordance with section 30 (6) of the code for approval of the said resolution plan by the Hon’ble NCLT and intimation of the same shall be given to the members as required.”
The resolution professional will submit the winning plan to the National Company Law Tribunal. The tribunal has to then approve which will allow the new owners to take control of the airline.
The Kalrock-Murari consortium had faced off with the consortium of FSTC, Big Charter, and Imperial Capital
Sanjay Mandavia, Founder of FSTC and Big Charter, commented, “I welcome the decision taken by the lenders, and congratulate the Kalrock-Jalan combine. I would also like to thank the RP for handling the insolvency process, and my advisors Deloitte and Luthra & Luthra. I would especially like to thank Braja Jena, Chairman and MD of Imperial Capital, for standing by me throughout the process.”
Mandavia is a former pilot who had earlier flown for Jet Airways. He mentioned his plans on launching FlyBig, a regional airline. This airline will be expected to take off later this year.
The Kalrock-Jalan bid is said to have offered a payout of INR 850 crore to the lenders, led by State Bank of India. It also includes equity in the airline to the banks. The FSTC-Imperial consortium offer, on the other hand, was a little less than INR 800 crore.
The Kalrock-Murari consortium will reveal more of its resolution plan in the coming future. Reports suggest that the consortium had modified their earlier proposal that would have helped the airline revive on international routes. But now, it will start off with services on domestic routes and then maybe go international.