Jet Airways Winning Bidder Withdraws Plea To Put Rs 200 Crore In Escrow
The Jalan Kalrock Consortium (JKC), the winning bidder of the grounded Jet Airways, faced a setback as it withdrew its plea to move Rs 200 crore to an escrow account. The National Company Law Appellate Tribunal (NCLAT) refused to provide any relief to JKC, prompting them to withdraw their appeal.
The consortium, consisting of Murari Lal Jalan and Florian Fritsch, had requested the transfer of the funds paid to lenders until the shares of Jet Airways were issued to them. However, the NCLAT asked them to either withdraw the plea or face dismissal, leading to their decision to withdraw.
Jet Airways ceased operations in April 2019, and the ownership transfer to the consortium has been delayed due to ongoing disputes between lenders and consortiums. Despite the NCLAT upholding the resolution plan and approving the ownership transfer to JKC earlier this year, challenges and disagreements have persisted.
The consortium had paid Rs 200 crore in cash and requested the lenders to adjust the remaining Rs 150 crore from a performance bank guarantee. This request was initially opposed but later directed to be adjusted by the NCLAT. However, the Supreme Court overturned this decision and instructed JKC to deposit the full amount.
The saga of Jet Airways’ revival continues as the legal battles and financial negotiations play out between the stakeholders involved.
