The admitted claims of employees stood at Rs 1,265 crore, while the consortium has proposed Rs 52 crore to settle their claims.
New Delhi: It is not yet a happy ending for the Kalrock-Jalan consortium and the insolvency resolution process of Jet Airways, as employees of the grounded airline are unhappy with the relief they are being offered which is heavily slashed down from the actual claims. The admitted claims of employees stood at Rs 1,265 crore, while the consortium has proposed Rs 52 crore to settle their claims.
The plan proposes to pay each workman of the corporate debtor Rs 11,000 cash, Rs 5,100 cash as medical expense reimbursement for the parents of the workmen, Rs 5,100 cash as school fee reimbursement for children of the staff, Rs 1,100 would be paid for stationary for children of the staff and one-time mobile phone recharge of Rs 500.
This cash payment will be made out of the contingency fund (Rs 8 crores). Additional amounts, if required, will be utilised out of the proceeds of sale of assets received by the corporate debtor. Now, there is uncertainty among the employees whether to vote in favour the plan or vote against it and lose whatever relief that is being offered. As per the resolution plan, the employees and workmen would get the relief on if 95 per cent of them vote in favour of the plan.
“If the proposal is not accepted by the employees and workmen within 30 days from the Approval Date, then no other creditor will have the right to seek such benefits or any part thereof and such proposal shall stand withdrawn. After expiry of the said period of 30 days from the Approval Date, the equity stake of 0.50 per cent, and cash payments of up to Rs 8 crores currently earmarked for employees and workmen will be given to the AFCs,” the NCLT’s order copy noted.
With the National Company Law Tribunal nod to the resolution plan, the Corporate Insolvency Resolution Process of Jet Airways has already concluded.
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