Will Jet Airways be able to take off anytime soon?
Jet Airways, once India’s dominant airline, could take wings again, and very soon at that.
If news reports are to be believed, lenders to Jet Airways have agreed to waive two preconditions to facilitate the takeover of the airline by the Jalan-Kalrock consortium.
In return, the consortium agreed last week to make the first tranche of its payment to lenders to get the stalled deal moving forward, per a report in The Economic Times.
When was the resolution plan approved and what are the general details on that?
Lenders led by the State Bank of India (SBI) approved the resolution plan by the consortium in October 2020. However, the plan's implementation was conditional on the validation of Jet's air operator's permit, approval of the business plan and, most critically, the approval to re-allot all suspended slots including bilateral and air traffic rights to Jet.
But is all well as far as lenders’ expectations go?
Not really. There has been a 15-month delay since the consortium that wants to revive the now-defunct airline received the approval of the National Company Law Tribunal. This, the report said, has made lenders wary of the promises by the consortium.
What was the resolution plan, in a nutshell?
According to the resolution plan, the consortium offered payments of Rs 380 crore in instalments and a 9.5% stake in the airline company to the lenders. The NCLT approved its plan in June last year.
What is the status on the claims admitted?
Grant Thornton-backed resolution professional Ashish Chhawchha has admitted Rs 7,453 crore in claims from financial creditors for which the consortium has offered payments totalling Rs 1,010 crore over five years, including Rs 380 crore in instalments, money from the future sale of assets and a 9.5% stake in the airline company.
But the request by the consortium to waive the preconditions also has raised more doubts, according to the report.
The report further said that Jet's lenders have been adamant that the airline can't buy or lease planes until the ownership is transferred; in other words, until their dues are settled.
Is the process of selling tickets etc on track?
Not really. The report said that the airline has missed its internal deadline of September-end to start ticket sales.
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