The resolution professional in charge of Jet, Grant Thornton’s Ashish Chhawchharia, confirmed the same to ET. Jet stopped operating in April last year and has been undergoing insolvency proceedings at the National Company Law Tribunal (NCLT). The NCLT is yet to give its approval.
The consortium plans to seek Jet’s flight slots that have now been allocated to its peers as the carrier wasn’t operating. It aims to apply to the ministry of civil aviation in the next few weeks.
“They plan to operate Jet as a long haul international airline like it was,” said a person close to the know.
According to the approved resolution plan, the consortium aims to infuse funds, offer equity to Jet’s lenders and sell its old planes to buy new ones, said the person in the know.
The plan of the consortium was approved by “a substantial majority”, of the committee, said a person in the know.
India’s biggest lender SBI which has 24% of the debt voted in favour of the Kalrock-Jalan plan, said a person familiar with the vote.
The plan was also given an edge in the valuation report submitted by Alvarez and Marsal (A&M) because of their qualitive advantage in terms of more payment in cash and better ability to pay, this person said.
“SBI has just gone by the valuation report by A&M. This offer looked qualitively better though quantitatively in terms of time frame both were neck and neck,” said this person.
SBI, Yes Bank, Punjab National Bank and IDBI Bank are the top four lenders according to the value of the debt. Most banks are said to have gone with SBI, the lead lender in this case. IDBI Bank has also gone with SBI, a second person said.
70% by value had voted by late night yesterday after which voting was extended till 1 pm today to allow some banks to get an okay from their head offices.
Yes Bank is the second largest financial creditor with about 17% of the debt.
Another consortium comprising Haryana-based Flight Simulation Technique Centre, Mumbai’s Big Charter and Abu Dhabi’s Imperial Capital Investments had been in the final race for Jet.
Kalrock’s website described it as a London-based asset management company with interests in real estate, venture capital and “special situations”.
Jalan, through his company MJ Developers, has invested in real estate, mining, trading, construction, FMCG, dairy, travel and tourism.
The process had been going on for a year with several investors throwing in their hats but unable to submit concrete proposals within the deadline. The suitors included South American conglomerate Synergy Group and New Delhi-based Prudent ARC.