Kalrock-Jalan consortium deposits ₹150 cr as first step to take ownership of Jet Airways

Business Line-November 02, 2020

The consortium had placed a bid of nearly ₹1,000 crore 

Ahead of the deadline on November 3, Kalrock Capital and Murari Lal Jalan’s consortium have deposited the performance security of approximately ₹150 crore.

“The selected bidder has submitted the performance security of ₹150 crore to the Resolution Professional,” sources close to the development told BusinessLine. 

Under the norms of the Insolvency and Bankruptcy Code, a bidder has to deposit this amount to bind the party in a bond. This is to ensure that the bidder doesn't withdraw its plan later. Along with this, if the winning bidder is unable to execute the proposed plan, the amount is forfeited. 

The Kalrock and Jalan consortium had placed a bid of nearly ₹1,000 crore. The lenders will also get 9.5 per cent of equity in Jet Airways along with 7.5 per cent equity in loyalty rewards company InterMiles ( formerly Jet Privilege). The consortium had outbid pilot-turned entrepreneur, Sanjay Mandavia of FSCT who had placed a bid along with Imperial Capital.

Ashish Chhawcharria, the RP appointed for Jet Airways, will now have to submit the resolution plan before the NCLT. Once the plan has been approved by the NCLT, the bidders will then have to get approvals from the Ministry of Civil Aviation.

Sources said the plan is likely to be submitted to the NCLT in the coming week. 

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