The committee of creditors standing in the way of the Jalan-Kalrock Consortium (JKC) taking control of Jet Airways (JAI, Mumbai International) has told India's National Company Law Tribunal (NCLT) that they will drop their application to wind up the grounded carrier if the consortium sticks to a new deadline and pays INR3.5 billion Indian rupees (USD42.2 million) by the end of the month.

In July, counsel for the committee of creditors told the NCLT that Jet Airways should be wound up because the previously agreed upon and NCLT-approved resolution plan was unworkable, and winding up was the only way creditors would recoup any funds.

The JKC secured the rights to take over Jet Airways in 2020, following its collapse the previous year owing around INR80 billion (USD965.5 million). In June 2021, the NCLT approved a resolution plan that would see the consortium pay creditors INR4.35 billion (USD52.5 million) over an agreed timeline, plus infuse capital into restarting the airline. However, the relationship between the consortium and the committee of creditors has broken down, with no funds forthcoming and a slew of legal challenges and recriminations.

The JKC says the committee of creditors refuses to greenlight the airline's restart, despite it having the necessary regulatory approvals, including a temporary air operator's certificate (AOC). However, the creditor's committee argues the consortium has met none of the conditions stipulated in the resolution plan, including making the agreed payments. On this basis, they have refused to okay the carrier's relaunch.

However, with pressure on the consortium to make a breakthrough ahead of the September 3 expiration of its interim AOC, the creditors' committee has thawed somewhat, telling the NCLT that if the consortium pays the required amount by the end of August, per the latest deadline laid down by the tribunal, they will back down. In response, the NCLT has asked counsel for formal submissions before the next scheduled hearing on August 18. Krishnendu Dutta, appearing for the consortium, told the tribunal his client would "do their best" to pay by the deadline. In July, the JKC said they had sufficient funds to meet their financial obligations and restart the airline.

Separately, filings by Jet Airways this week reveal it lost INR506.5 million (USD6.1 million) in the second quarter of 2023 against revenues of INR375.7 million (USD4.5 million).