Amid uncertainty over the future of airline Jet Airways, the Jalan Kalrock consortium on Friday said it has not breached any of the terms of the insolvency resolution plan and will face difficult decisions in the near future to manage its cash flows.
Airline has not yet come under our jurisdiction
The resolution plan of the consortium was approved by the National Company Law Tribunal (NCLT) in June last year. Jet Airways is yet to start operations even after the airline got the certificate of air operations from the Directorate General of Civil Aviation in May this year. The situation is still not clear on when it will be able to start again. Jalan Kalrock Consortium (JKC) said in a statement, “We look forward to taking control of the company in accordance with the NCLT process, but this is taking additional time, due to which we will have to make difficult but necessary decisions in the near future.” So that the cash flow can be arranged and the futurecan be secured.The airline has not yet come under our jurisdiction.
JKC said significant progress is being made towards restarting the airline. It further said, “We have not violated any of the terms of the resolution plan and our commitment to start Jet Airways afresh.”
It further added, “Subsequent to the approval of the NCLT, all the conditions stipulated in the resolution plan were met by May 20, 2022 and necessary filings in this regard were also made before the NCLT on May 21, 2022.”
The National Company Law Appellate Tribunal (NCLAT) had last month directed the consortium to pay due provident fund and gratuity to the airline’s employees. Earlier there was a plan that the airline would be started by October 2022.
10% employees were sent on leave without pay
On the other hand, according to Jet Airways CEO Sanjeev Kapoor, the airline has sent 10% of its employees on leave without pay and cut salaries by 30%. The action follows a standoff between promoters Jalan-Kalrock Consortium (JKC) and its lenders. Due to this deadlock, there is a delay in resuming the services of the airline. Earlier this week, JKC urged the NCLAT that the gratuity dues of Jet employees should be paid from the airline’s existing cash balance and lenders’ funds.
Total claim is around 275 crores
In October, the NCLAT directed the consortium to pay gratuity and provident fund to the employees of the airline till the date of commencement of the insolvency process in June 2019. The total claim is around 275 crores.
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