Bankrupt Jet Airways lenders approve resolution plan

India’s Jet Airways will be acquired by an investor consortium on Saturday under a multi-million dollar resolution plan approved by the carrier’s creditors.

The plan, submitted by a consortium of London-based Kalarock Capital and United Arab Emirates businessman Murari Lal Jalan, comes after months of negotiations over the airline’s future and was confirmed in a regulatory filing that provided no details of the deal.

A source close to the situation said that the new owners had agreed to pump in 10 billion rupees ($ 136 million) as working capital for the revival of the airline. Another 10 billion rupees will be given to creditors over a period of five years.

The airline’s financial creditors will also get a 10% stake in the company, the source said, although the plan remains subject to approval from the bankruptcy court and the country’s airline regulator.

The jet – which operated a fleet of more than 120 aircraft serving dozens of domestic destinations and international hubs such as Singapore, London and Dubai – was forced to land all flights on the ground in April 2019, which reduced due to mounting losses Tried to compete with cost. Rivals.

At least 280 slots were vacated in Mumbai after the jet halt was operational and 160 in Delhi, which were then given to their rivals. Revival plan is also based on regaining some of these slots.

“The plan is to gradually ramp up and increase capacity as they will start anew,” the source said. There will probably be no resumption of flights between at least three and six months.

As its operation was halted by the airline and its lenders were looking for suitors. Jet’s financial and operational creditors were owed nearly 300 billion rupees after the operation was halted.

($ 1 = 73.4420 Indian rupees)