The 17th Committee of Creditors (CoC) meeting of Jet Airways (India) was held on 3 October 2020 and the Resolution Professional submitted the IBC (Insolvency and Bankruptcy Code) compliant resolution plans for the consideration of the CoC members.

The final resolution plans submitted by the two resolution applicants (RAs) were discussed and deliberated by the CoC members. The resolution plans submitted by both the RAs were put for e-voting for approval by the CoC members.

The e-voting concluded on 17 October 2020 and the resolution plan submitted by Murari Lal Jalan and Florian Fritsch was duly approved by the CoC. The resolution professional is in the process of filing an application for approval of the said resolution plan by the National Company Law Tribunal and intimation of the same shall be given to the members as required.

As per media reports, the Kalrock Capital-Murari Lal Jalan consortium has proposed to re-launch Jet Airways as a full-service carrier, with an initial investment of Rs 1,000 crore. It has reportedly initiated discussions with lessors and international airlines for contracts and partnerships.

Jet Airways is debt ridden non operational airline company. The airline had grounded its operations in April 2019, after it ran out of money to meet its debt repayment obligations. It was admitted for insolvency on 20 June 2019, after lenders failed to sell the grounded airline.

The air carrier reported a standalone net loss of Rs 5,535.75 crore in the year ended March 2019 (FY19), higher than net loss of Rs 767.62 crore in the year ended March 2018 (FY18). Total income declined 2.7% to Rs 23,314.11 crore in FY19 from Rs 23,958.37 crore in FY18.

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The media reported that a consortium of the London-based asset management company Kalrock Capital and UAE investor Murari Lal Jalan had been chosen as the successful resolution applicant by the committee of creditors in the corporate insolvency process of the Jet Airways (India).

Jet Airways, however, clarified to the bourses today (8 October) that such news items are false and misleading and must be disregarded. It added that the committee of creditors had not concluded the e-voting under the Insolvency and Bankruptcy Code and the resolution professional shall make appropriate disclosures after the voting process is duly completed.

The Jalan-Kalrock consortium has also intimated the Resolution Professional that it has not made any statement claiming to have been chosen as the successful resolution applicant, the airline clarified.

Jet Airways is debt ridden non operational airline company. The airline had grounded its operations in April 2019, after it ran out of money to meet its debt repayment obligations. It was admitted for insolvency on 20 June 2019, after lenders failed to sell the grounded airline.

The air carrier reported a standalone net loss of Rs 5,535.75 crore in the year ended March 2019 (FY19), higher than net loss of Rs 767.62 crore in the year ended March 2018 (FY18). Total income declined 2.7% to Rs 23,314.11 crore in FY19 from Rs 23,958.37 crore in FY18.

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Total income declined 2.7% to Rs 23,314.11 crore in FY19 from Rs 23,958.37 crore in FY18.

Total expenses jumped 13.8% on a year-on-year (YoY) basis to Rs 28,141.61 crore due to higher aircraft fuel expenses (up 24.8% YoY), higher aircraft and engines lease rentals (up 18.4% YoY), higher finance costs (up 16.5% YoY) and higher other expenses (up 20.2% YoY).

Among the other expenses, the airline's non-claimable GST jumped to Rs 397 crore in FY19 from Rs 63.72 crore in FY19. Forex losses surged to Rs 448.08 crore in FY19 from Rs 47.06 crore in FY18.

Ashish Chhawchharia, resolution professional (RP) for Jet Airways (India), said that this is to bring to your notice that the resolution professional is not in a position to provide the consolidated financial results, as the subsidiaries of the company are separate legal entities, also currently non-operational and the RP is facing huge difficulty in obtaining relevant data from the said subsidiaries.

Shares of Jet Airways hit a lower circuit of 5% at Rs 29.10 on the BSE.

Jet Airways is debt ridden non operational airline company. The airline had grounded its operations in April 2019, after it ran out of money to meet its debt repayment obligations. It was admitted for insolvency on 20 June 2019, after lenders failed to sell the grounded airline.

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The stock has surged 33.51% in last six trading sessions from its previous closing low of Rs 28.2 on 30 December 2019.

Synergy Group, a South American group has reportedly shown an interest in debt ridden Jet Airways by submitted a fresh expression of interest (EOI) for investment. Lenders to Jet Airways have set a final deadline of 15 January for the submission of expressions of interest. While Synergy wants Jet's lenders to make a huge haircut on its debt of over ₹8,500 crore, it will also need to find an Indian partner for the acquisition, reports added.

Last month, media reported that UK-based Hinduja Group, run by brothers Gopich and Hinduja and Ashok Hinduja, is preparing a bid to buy the grounded air carrier. The group plans to submit an expression of interest by the 15 January deadline, signaling its intent to make a formal offer. Hinduja is seeking a partner to bid, the reports added.

Hinduja Group had earlier this year considered bidding for Jet Airways in partnership with Etihad, but Etihad jettisoned the proposal, dealing a severe blow to efforts aimed at rescuing the debt-laden airliner that has suspended flights for nearly two months.

After Jet Airways went bust in mid-April, the government temporarily allotted the hundreds of airport slots owned by it to other carriers, with an aim to contain soaring airfares in the peak holiday season.

Jet Airways was admitted for insolvency on 20 June 2019, after lenders failed to sell the grounded airline. The National Company Law Tribunal (NCLT) on 20 December 2019 allowed Ashish Chhawchharia, resolution professional (RP) for Jet Airways, to extend the corporate insolvency resolution process (CIRP) of the grounded airline by 90 days. Earlier this month, the RP had sought an extension for the resolution period after the Colombian Synergy Group failed to submit a business plan for the revival of Jet Airways by 16 December.

Jet Airways is debt ridden non operational airline company.

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