After Supreme Court ordered the liquidation of Jet Airways on Thursday, its lenders may hope to recover Rs 1000 crore of the total dues.
The total book value of non-core assets held by Jet Airways is estimated to be worth Rs 1,067 crore, which includes six luxury cars, according to the court documents seen by Moneycontrol. The airline's assets in Amsterdam include a Boeing 777-35 aircraft, spare aircraft parts, catering items and trade receivables and land owned by the airline.
The biggest non-core asset that Jet Airways holds is the 15,000 sq. mtr floor in a commercial building in Mumbai’s Bandra Kurla Complex, valued at Rs 683 crore and the Boeing 777-35 valued at Rs 376.4 crore as of June 2019, as mentioned in the report.
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Apart from Jet Airways' non-core assets, it also owns 11 aircrafts parked at airports in Mumbai, Delhi and Hyderabad. Six aircrafts, including three Boeing 777s, two Airbus A330s and one Boeing 737, are parked at Mumbai airport. Delhi airport hosts two Boeing 777s and one Boeing 737, while Hyderabad airport hosts one Boeing 737 and one Airbus A330.
Liquidation in Best Interest of Lenders and Employees: SC
The Supreme Court ordered liquidation of Jet Airways, after finding that National Company Law Appellate Tribunal (NCLAT) judgment disregarded its January 2023 order.
The apex court pronounced its judgment on a batch of appeals including the one by lenders, led by State Bank of India, against the NCLAT's order which approved the takeover of Jet Airways by a consortium of UK's Kalrock Capital and United Arab Emirates-based entrepreneur Murari Lal Jalan, the airline’s resolution applicant.
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It noted that liquidation will be in the best interest of its lenders and employees as Jalan-Kalrock Consortium (JKC) failed to implement the resolution plan, five years since its approval.
The court said that the NCLAT allowed the adjustment of performance bank guarantee (PBG) of Rs 150 crore against an infusion requirement of Rs 350 crore from JKC.
"The first tranche payment of Rs 350 crore was required to be made by March 21, 2022 (which has not been paid till date, despite several extensions given by NCLT/NCLAT/Supreme Court)," the lenders said in their appeal filed through counsel Sanjay Kapur.
The lenders claimed that they have been offered Rs 4,783 crore, payable in parts over five years, against their total admitted claim of Rs 7,800 crore. A total of around Rs 15,723 crore was admitted as claims by National Company Law Tribunal (NCLT) when the airline was grounded.
The once premier airline, led by Naresh Goyal, has been grounded since 2019 after it ran out of money and failed to repay its debts. Despite the attempts of the consortium to restart the airlines, it couldn’t take off.
The liquidation process will begin with the NCLT appointing a liquidator to identify and value the assets for sale.
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