Committee of creditors approve Kalrock-Jalan consortium’s resolution plan for Jet Airways

Lenders to Jet Airways (India) Limited have approved a resolution plan to revive the airline. The Committee of Creditors cleared the plan submitted by UK-based Kalrock Capital and UAE-based entrepreneur Murari Lal Jalan. Jet’s insolvency resolution professional will now seek approval for the plan from the National Company Law Tribunal. The consortium will also need clearance from the aviation and corporate affairs ministries. Lenders led by the State Bank of India discussed two resolution plans and voted for the Kalrock-Jalan consortium. Reportedly, the Kalrock-Jalan plan was also given an edge in the valuation report submitted by Alvarez and Marsal because of their qualitative advantage in terms of more payment in cash and better ability to pay. According to the approved resolution plan, the consortium aims to infuse funds, offer equity to Jet’s lenders and sell its old planes to buy new ones.