Jet Airways takes off on buzz of Kalrock-Jalan consortium winning bid

Jet Airways (India) hit an upper circuit of 5% at Rs 30.05 on reports that lenders to Jet Airways have chosen UK-based Kalrock Capital and UAE-based entrepreneur Murari Lal Jalan as the new owners of the bankrupt airline.

Oct 08, 2020 02:10 IST capital market

The media reported that a consortium of the London-based asset management company Kalrock Capital and UAE investor Murari Lal Jalan had been chosen as the successful resolution applicant by the committee of creditors in the corporate insolvency process of the Jet Airways (India).

Jet Airways, however, clarified to the bourses today (8 October) that such news items are false and misleading and must be disregarded. It added that the committee of creditors had not concluded the e-voting under the Insolvency and Bankruptcy Code and the resolution professional shall make appropriate disclosures after the voting process is duly completed.

The Jalan-Kalrock consortium has also intimated the Resolution Professional that it has not made any statement claiming to have been chosen as the successful resolution applicant, the airline clarified.

Jet Airways is debt ridden non operational airline company. The airline had grounded its operations in April 2019, after it ran out of money to meet its debt repayment obligations. It was admitted for insolvency on 20 June 2019, after lenders failed to sell the grounded airline.

The air carrier reported a standalone net loss of Rs 5,535.75 crore in the year ended March 2019 (FY19), higher than net loss of Rs 767.62 crore in the year ended March 2018 (FY18). Total income declined 2.7% to Rs 23,314.11 crore in FY19 from Rs 23,958.37 crore in FY18.

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