Buy / Sell Jet Airways last year
Creditors of Jet Airways have filed a reply in the National Company Law Tribunal (NCLT) regarding Jalan-Kalrock Consortium, the successor of Jet Airways, claiming that it fulfills all the conditions for taking over the airline.
There is an important hearing on November 29 (tomorrow) on the consortium’s bid to acquire the owner of Jet Airways as the creditors want the bid dismissed on grounds of fraud.
According to the creditors, if the relief sought by JKC is granted, the shareholders of Jet Airways will face “severe loss and prejudice”. They also said that JKC’s allegation is an “attempt to cover up” its failure to carry out certain actions to meet conditions precedent (CP).
Creditors of Jet Airways have alleged that JKC has filed an application for misleading the court on compliance with the terms and conditions as well as trying to take control of Jet and “avoid its obligations” under the approved resolution plan.
The effective date of implementation of all CPs as per the terms of the Resolution Plan has been extended to May 25, 2022, by the NCLT.
Creditors say JKC “falsely represented” that it agreed with the CPs for an effective date of May 20, 2022, to the Committee of Creditors (CoC) and to the bankruptcy court on May 21, 2022. He has met with his situation report.
The lenders continue to say that JKC could not complete all the CPs before or by the expiry of the stipulated time of 270 days from the approval of the plan.
In June 2022 the lenders received a legal opinion from SGI Tushar Mehta which found compliance with the CP by JKC questionable. They finally stated that they have repeatedly maintained their position that CPs have not been held in several CoC meetings.
Lenders also claimed that JKC interpreted the preconditions in the resolution plan with “unnatural methods of obtaining benefits” not included in the Plan.
(Editorial: Abhishek Jha)
First Edition: IST