Jalan Kalrock to fund for Jet Airways

Jalan Kalrock Consortium, the winning bidder for the grounded Jet Airways, will make a total cash infusion of Rs 1,375 crore in the airline and lenders will take a steep haircut on their admitted claims of over Rs 7,800 crore under the approved resolution plan. The National Company Law Tribunal (NCLT) on June 22, approved the consortium's resolution plan for Jet Airways, which has been undergoing insolvency resolution process since June 2019. The carrier shuttered operations in April 2019.

The consortium has proposed a total cash infusion of Rs 1,375 crore, including Rs 475 crore that will be used for payment to stakeholders, including financial creditors. An amount of Rs 900 crore would be invested for capital expenditure and working capital requirements for smooth functioning of the airline, as per the detailed order published by the tribunal on Wednesday.

The amount of Rs 475 crore includes CIRP (Corporate Insolvency Resolution Process) costs. As per the resolution plan, assenting financial creditors would get Rs 380 crore, which means a haircut of 95 per cent compared to the admitted claims of a little over Rs 7,807 crore. Among others, there would be an upfront payment of Rs 185 crore to the financial creditors. Zero-coupon bonds worth Rs 195 crore would be issued to them and the lenders stand to have a 9.5 per cent equity stake in the airline.

Among others, they would get a 7.5 per cent stake in Jet Privilege Private Ltd. Further, the consortium would invest a maximum of Rs 600 crore in the equity of Jet Airways. About slots, the NCLT noted that the facts and circumstances would indicate that presently the slots cannot be restored to Jet Airways on a historic basis.