Winning bidder proposes benefits for Jet Airways staff with rider; need at least 95% approval

Providing a phone or an iPad or a laptop as well as cash payments are among the various benefits proposed for Jet Airways' workmen under the NCLT-approved resolution plan, but to receive the benefits at least 95 per cent of the defunct airline's workforce has to clear the winning bidder's proposal.
The voting process on the winning bidder Jalan Kalrock Consortium's proposal for employees and workmen of Jet Airways as per the resolution plan commenced on July 5 and it will be on till August 4.

On June 22, the National Company Law Tribunal (NCLT) gave its nod for the consortium's resolution plan, subject to certain conditions.

As per the plan, the consortium has offered certain amounts and benefits for persons who were the employees and workmen of Jet Airways as on June 20, 2019.

Insolvency resolution process commenced on June 20, 2019 for the airline, which shuttered its operations on April 17, 2019.

"The consortium's proposal is over and above any amounts which the employees and workmen are entitled to as per the resolution plan for their claims arising prior to June 20, 2019. The consortium's proposal is valid only if at least 95 per cent of employees and workmen of Jet 1.0 vote in favour of it," as per a notice posted on the airline's website.

Equity stakes in the reconstituted share capital of the airline and Airjet Ground Services Ltd, cash payment, providing certain IT assets and free tickets are part of the proposal. They will be valid only if at least 95 per cent of the carrier's workforce supports the resolution plan.

The consortium has proposed to give to "each workman, one IT equipment (phone or iPad or laptop) out of existing IT assets of Jet 1.0".

"IT assets will be given on lottery/ chit/ random identification basis to ensure the distribution process is fair, neutral, and unbiased. The consortium accepts no responsibility or liability for the condition or value of assets.

"If any of IT assets are left after completing distribution to workmen in the manner described above, then the consortium will give one IT equipment (phone or iPad, or laptop) to each employee. Priority in such distribution shall be given to employee with lowest last drawn salary up to the highest drawn salaried employee," the notice said.

Among others, the consortium will pay a cash of Rs 11,000 to each employee and Rs 22,800 to each workman.

In the case of workmen, each one will get Rs 11,000 in cash. An amount of Rs 5,100 will be medical expense reimbursement for parents of workmen, Rs 5,100 cash for school fee reimbursement for children of workmen and Rs 1,100 towards stationary for their children. Besides, Rs 500 will be provided towards "one-time mobile phone recharge for each workman in Jet 1.0 ex-workforce," as per the notice.

Jalan Kalrock Consortium will make a total cash infusion of Rs 1,375 crore into the airline and lenders will take a steep haircut on their admitted claims of over Rs 7,800 crore under the approved resolution plan.

A monitoring committee is managing the day-to-day affairs of Jet Airways and it will continue to do so till implementation of the resolution plan.