Jet’s creditors agree to Kalrock-Jalan plan

Flights may take 3-6 months to start

Jet Airways would be acquired by an investor consortium under a multimillion dollar resolution plan approved by the carrier’s creditors on Saturday.

The plan submitted by a consortium of London-based Kalrock Capital and UAE-based businessman Murari Lal Jalan comes after months of talks and was confirmed in a regulatory filing, which gave no details.

Stake for creditors

A source close to the situation said the new owners had agreed to pump in ₹10 billion ($136 million) as working capital. Another ₹10 billion will be given to creditors over five years. Financial creditors will also get 10% stake, subject to approvals, the source said.

Jet, which operated more than 120 planes serving dozens of domestic destinations and international hubs, was forced in April 2019 to ground all flights.

After Jet halted operations at least 280 slots were vacant in Mumbai and 160 in Delhi, which were then given to its rivals. The revival plan is also based on getting some of these slots back.

“The plan is to ramp up slowly and to increase capacity gradually as they will be starting afresh,” the source said. Any resumption of flights will likely not happen for between three to six months at least.

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