InvestorQ : Why are the Jet Airways employees averse to the takeover by Kalrock Jalan?
shrinidhi Rajan made post

Why are the Jet Airways employees averse to the takeover by Kalrock Jalan?

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4 months ago
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The union of employees of Jet Airways have moved the NCLT Appellate Tribunal or NCLAT to quash the NCLT approval for the Kalrock-Jalan resolution plan. The employees had cited doubts over continuity of business as well as the intent of the acquiring company to clear the unpaid salary dues.

While the Kalrock-Jalan plan had was approved by NCLT in June this year, the net recoveries for financial and operational creditors was extremely low, in fact a fraction of less than 10%. The problem is that the NCLT had admitted a fraction of the claims filed by airline employees and operational creditors. Even on that fraction approved amounts, the final payment was likely to be much lower, making the resolution plan meaningless.

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