Jet Airways Case: Jalan Kalrock Consortium Gets Extension To Pay Lenders

The National Company Law Appellate Tribunal on Monday gave the Jalan Kalrock Consortium an extension till Sept. 30 to pay Rs 350 crore to lenders.

In the previous hearing, the consortium had submitted that they would make a payment of Rs 100 crore by Aug. 31, another Rs 100 crore by Sept. 30, and the rest of the Rs 150 crore would be adjusted through the encashment of a performance bank guarantee in favour of the lenders.

However, Additional Solicitor General N Venkatraman, appearing on behalf of the lenders, submitted that the performance bank guarantee was executed for other expenses of the resolution plan and cannot be construed to be a part of the payment of Rs 350 crore.

But the NCLAT has agreed to adjust the bank guarantee in the said payment amount.

The lenders had also argued that an extension for the payment could not be given to the consortium as every delay in payment causes creditors to incur further costs. The management committee takes care of 11 of Jet Airways' aircraft, which they submitted further adds to the costs.

The dispute arose as lenders alleged that after being the successful bidder for Jet Airways (India) Ltd., JKC had not completed any condition precedents laid down by the NCLT to transfer ownership.

The matter will now be taken up for hearing on Oct. 4.