Slapped with additional liabilities, the Jalan-Kalrock consortium suggests lenders take a further cut in their share of the agreed payment. But with the banks playing hardball, is there hope for the airline’s revival?
The Jet Airways revival story has been years in the making with challenges continuing to crop up. Two weeks ago, the National Company Law Appellate Tribunal slapped additional liabilities on the airline’s new owner. The Jalan-Kalrock consortium was told to clear gratuity and provident fund dues of Jet Airways workmen accrued till June 2019, when the insolvency proceedings began. The appellate tribunal gave the resolution professional 30 days to compute the amount to be paid.
This means that the revival of the airline now hinges on hard-nosed negotiations between the consortium and the banks. In its first comment following the 21 October order, the consortium took a firm line in its response to queries from The Morning Context. While reaffirming its commitment “to the relaunch of Jet Airways and to recapture the lost glory”, the consortium’s spokesperson said, “The NCLAT orders do not impact JKC or their plans for the revival of Jet Airways as their liabilities
Prince leads coverage for our Business section at The Morning Context. A fascination with the written word has taken Prince to some of the leading newsrooms across the country, including The Economic Times, Dow Jones Newswires, Forbes India and Moneycontrol. In a career spanning over 18 years, Prince has led teams, managed pages, projects and special editions, and has authored The Consolidators, published by Penguin Random House in 2017.