India’s oldest private carrier Jet Airways went bankrupt and was grounded in April of last year. The airline, with nearly $1.5 billion in accumulated debt, is set to complete its insolvency process by 21 October.
Following several media reports of London-based Kalrock Capital winning a bid for defunct carrier Jet Airways, the airline’s resolution professional Ashish Chhawchharia on Thursday sought to clarify that no winning bidder has been declared as yet.
Stating that the voting process for the bids is still underway, Chhawchharia said the news of Kalrock Capital being finalised by the lenders is “premature” and devoid of “facts”.
The voting will continue until 16 October, with lenders required to get approval from their respective boards before casting a vote.
Indian social media has been flooded with reactions, with netizens sharing that the Kalrock-Jalan consortium has been declared the winner of the bidding process for Jet Airways. It was reported that the consortium had secured over 60 percent of votes from lenders.
For finalising and adopting any revival plan, the proposal should garner at least 66 percent of votes from lenders. After approval, the resolution professional submits an application with the National Company Law Tribunal.
Debt-ridden Jet Airways declared bankruptcy in April of last year after lenders refused a demand for emergency funding and it has been under the insolvency process since June 2019.
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