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.
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 to re-allot all suspended slots including bilateral and air traffic rights to Jet.
“Because of the delay in the implementation of the plan, lenders have agreed not to oppose any plea by the consortium in the NCLT seeking a waiver of these conditions,” said a person aware of the developments. “However, the completion of the deal still hinges on payments to lenders without which control will not be transferred.”
“Finally, it is all about money hitting our accounts. Until that does not happen, this transaction will not go through,” said a second person aware of the negotiations. “Jalan-Kalrock has never denied transferring the money but the fact that it has taken so long raises doubts on their intentions.”
A person close to the Kalrock-Jalan consortium has agreed to start repaying lenders and the first tranche “will be released soon”, without elaborating on either the amount or the time frame.
But the request by the consortium to waive the preconditions also has raised more doubts.
ET has seen a copy of the order.
This lawyer who has followed the case closely said that the extended effective date of the resolution plan – May 25 – has already lapsed.
“Lenders have allowed the deadline to lapse in the hope that they will get their money back. If they don’t soon, they will definitely take action,” he added.
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.
“A timeline for the repayment of dues is critical to the recovery of Jet. Lenders have so far not got anything from the consortium, lenders said.
Meanwhile, the airline has missed its internal deadline of September end for the commencement of ticket sales.