Jalan Kalrock Consortium to infuse Rs 1,375 cr cash in Jet; lenders to take steep haircut

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New Delhi, Jun 30 (PTI) Jalan Kalrock Consortium, the winning bidder for the grounded Jet Airways, will make a total cash infusion of Rs 1,375 crore in the airline and lenders will take a steep haircut on their exposure as they will receive an upfront payment of just Rs 185 crore under the approved resolution plan.

The National Company Law Tribunal (NCLT) on June 22 approved the consortium's resolution plan for Jet Airways, which has been undergoing insolvency resolution process since June 2019. The carrier shuttered operations in April 2019.

The consortium has proposed a total cash infusion of Rs 1,375 crore, including Rs 475 crore that will be used for payment to stakeholders, including financial creditors.

An amount of Rs 900 crore would be invested for capital expenditure and working capital requirements for smooth functioning of the airline, as per the detailed order published by the tribunal on Wednesday.

The amount of Rs 475 crore includes CIRP (Corporate Insolvency Resolution Process) costs.

Financial creditors will take a steep haircut on their total admitted claims of a little over Rs 7,807.75 crore.

As per the resolution plan, an upfront payment of Rs 185 crore would be made to the financial creditors. Zero-coupon bonds worth Rs 195 crore would be issued to them and the lenders stand to have a 9.5 per cent equity stake in the airline.

Among others, they would get a 7.5 per cent stake in Jet Privilege Private Ltd. PTI RAM IAS ABM ABM

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