Jet Airways hits upper circuit after CoC approves resolution plan

Shares of Jet Airways (India) hit upper circuit on Monday after the airlines’ committee of creditors (CoC) on Saturday approved the resolution plan submitted by the consortium of UK’s Kalrock Capital and UAE-based entrepreneur Murari Lal Jalan under the insolvency resolution process.

The plan was approved after the conclusion of the e-voting on the proposal, Jet Airways RP (resolution professional) Ashish Chhawchharia said in a BSE filing.

“The resolution submitted by Murali Lal Jalan and Florian Fritsch has been duly approved by the CoC under Section 30(4) of the Code as the successful resolution plan,” said the filing.

Shares of Jet Airways jumped 5 per cent to Rs 42.15, while the benchmark BSE Sensex traded 0.82 per cent higher at 40,309.

The grounded airline had received bids from two consortiums, one comprising UK-based Kalrock Capital founded by Florian Fritsch and UAE-based entrepreneur Murari Lal Jalan.

The carrier was admitted to the NCLT in June 2019, and the CoC has met 16 times since then.

Jet Airways owes more than Rs 8,000 crore to banks, with public sector lenders having significant exposure.

The NCLT had on June 20, 2019, admitted the insolvency petition filed by the lenders' consortium led by State Bank of India against Jet Airways. The insolvency process for Jet Airways was supposed to be completed by June this year and the deadline was first extended to August 21, due to lockdown curbs, and then extended for an unspecified time by the RP.