Kalrock Capital, one of the two bidders participating in the revival of Jet Airways, has raised questions over the transparency of the process following lenders' decision to seek revised bids.
Kalrock has written to the lenders saying that the bid process should be completed transparently and quickly, pointing to the successful resolution of bankrupt Virgin Australia. A source familiar with resolution process said Kalrock's business plan had been ranked higher than Imperial Capital's plan and another extension in bid submission may have made it jittery.
On Monday, the committee of creditors (CoC) decided to give two bidders - Kalrock Capital and a consortium of Imperial Capital, FSTC and Big Charters a few additional days to revise plans and submit their final offers.
Earlier, lenders had asked the two parties to give their final offers in the previous week. While the two parties submitted their respective bids in July itself, the lenders sought revisions in the bids, after reviewing them, leading to a delay in the revival process. The bids have been evaluated by lenders and the consultancy, Alvarez & Marsal, is assisting lenders in the process.
According to a report on Moneycontrol website, Kalrock Capital, in its letter, has asked the lenders to consider its last offer as final and vote on the plan before end of this month, "failing which we will struggle to continue engaging meaningfully with the Hon'ble CoC in what is fast becoming an exercise being run on the terms that FSTC Consortium sets out – rather than the Hon'ble CoC."
Kalrock Capital did not respond to an emailed query. An e-mail sent to the resolution professional of Jet Airways seeking comments on the subject did not elicit any response. The State Bank of India, the lead lender, also did not respond to queries.
Time is running out for the beleaguered airline company as the corporate insolvency resolution process (CIRP) is supposed to end on October 21. Hence, the Resolution Professional (RP) has to present a revival plan to the National Company Law Tribunal (NCLT) for approval before the CIRP deadline ends, provided the plan first gets approved by the committee of creditors (CoC).
Sources said the bidders were seeking clarity from the Indian government on airport slots and traffic rights of Jet Airways. The airport slots and traffic rights of the airline company have been temporarily given to other airline companies. The resolution applicants have also raised concerns over the legal issues faced by the company.
The airline operated its last flight between Amritsar and Mumbai on April 17, 2019, after lenders turned down its demand for emergency funding. It has been under insolvency since June last with admitted claims of Rs 1,572.30 crore. The amount of claims received is to the tune of Rs 37,543 crore, of which financial creditors have claimed Rs 11,290 crore.
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