NCLT Approves Jalan Kalrock Consortium's Resolution Plan For Jet Airways

The National Company Law Tribunal (NCLT) has approved Jalan Kalrock Consortium's resolution plan for Jet Airways.

Jet Airways it maybe recalled had shut operations for the last 2-years and has sizeable debts to clear towards lenders.

The Kalrock-Jalan had demanded slots and traffic rights allotted to Jet Airways, a move opposed by the civil aviation ministry. The tribunal rejected the consortium's demand, according to reports. Shares of Jet Airways gained 5% after the resolution plan for the bankrupt firm was approved.

The stock climbed 4.96 per cent to Rs 99.45 -- its upper circuit limit -- on the BSE. On the NSE, it gained 4.96 per cent to Rs 99.45 -- its highest trading permissible limit for the day.

Jet Airways, which suspended operations in April 2019, has been undergoing a resolution process under the Insolvency and Bankruptcy Code (IBC) for two years. In October 2020, the Committee of Creditors (CoC) of the grounded airline had approved the resolution plan submitted by a consortium of UK's Kalrock Capital and UAE-based entrepreneur Murari Lal Jalan. In June 2019, NCLT admitted the insolvency petition against Jet Airways filed by the lenders' consortium led by the State Bank of India.

With inputs from pti