InvestorQ : What is the latest status of the Jet Airways NCLT resolutions?
shrinidhi Rajan made post

What is the latest status of the Jet Airways NCLT resolutions?

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5 months ago
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During the last week, the Kalrock Jain consortium finally got the NCLT approval. But, it could have been managed better. First a quick background. When Jet stopped flying in April 2019, there was little hope of the airlines reviving without government support. Jet was already starved for funds and nether the promoter nor banks were to keen to infuse fresh funds into the company. Even potential buyers had backed off and the delay and COVID made it worse.

Now the NCLT resolution is over and banks will get a paltry 5% of their loans. Ideally, the government should have intervened and syndicated a rescue deal in 2019, before COVID set in and the economics of aviation industry went for a toss. While a rescue may not have made Jet profitable, it would have given them a fighting chance. By delaying, aircraft got repossessed by lessors leaving the airline with virtually no assets. This was avoidable.

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