InvestorQ : Why does Punjab National Bank want the Jet Airways acquisition by Kalrock Jalan called off?
prachi Patwardhan made post

Why does Punjab National Bank want the Jet Airways acquisition by Kalrock Jalan called off?

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sara Kunju answered.
3 months ago
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In the last few weeks, the employees of Jet Airways have been up in arms against the Kalrock Jalan proposal to take over Jet Airways. Now, one of the largest lenders to Jet, Punjab National Bank, has called on the NCLAT to reject the rescue plan offered by the Kalrock Jalan consortium. Interestingly, the NCLT had already approved the plan and at that point of time, the committee of creditors or COC had also put in their assent.

PNB has larger concerns. It has alleged irregularities in the deal and is of the view that the deal is not economically meaningful at the current compensation offered by the Kalrock Jalan consortium. Against PNB’s loan recovery claim of Rs.1,000 crore, Kalrock Jalan consortium has only accepted claims worth Rs.200 crore. PNB has argued to the NCLAT that the 80% reduction by the consortium was arbitrary and illegal. The hearing is on 21-Sep.

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