Creditors approve Jet Airways Resolution plan
Creditors to Jet Airways have approved a resolution plan which will give the country’s oldest private carrier a new lease of life, the airline said in a regulatory filing on Saturday.
The plan submitted by a consortium of London-based Kalrock Capital & UAE-based businessman Murari Lal Jalan comes after months of talks over the airline’s future & was confirmed in the regulatory filing, which gave no details of the deal.
A person aware of the developments said the new owners agreed to pump in ₹1,000 crores as working capital for the revival of the airline. Another ₹1,000 crores will be given to creditors over a period of 5 years.
Financial creditors of the airline will also get 10 per cent stake in the company, the person said, though the plan remains subject to approvals from the bankruptcy Court & the country’s airline regulator.
Jet Airways — which operated a fleet of more than 120 planes serving dozens of domestic destinations & international hubs such as Singapore, London & Dubai — was forced in April 2019 to ground all flights, crippled by mounting losses as it attempted to compete with low-cost rivals.