Jet Airways Insolvency: Legal Issue Cured

The ‘legal issue’ that briefly put the Jet Airways insolvency process at risk last week, has now been ‘cured,’ clearing the decks for the voting on the two bids. The process that began in June 2019, has finally reached a stage where it is close to the finishing line, after repeated delays and seemingly endless twists and turns. Legal issues cropped up after a risk assessment of the two consortiums and their bids was done by the Indian unit of Kroll, a US-based corporate investigations and risk consulting firm. The issue pertained to the bid presented by the FSTC-Imperial Capital combine. The meeting on October 03 this year, attended by lenders, resolution professionals and representatives of the two bidders, was originally called to discuss the bids presented by the FSTC-Imperial Capital combine, and the Kalrock Capital-Murari Jalan consortium. State Bank of India is the lead lender to Jet Airways. The airline, which was grounded in April 2019, owes banks about 8,000 crore and its total claims have reportedly touched 40,000 crore.