At least 95% Jet-I staffers must okay package offered by Jalan-Kalrock or lose this too – Times of India
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NEW DELHI: At least 95% of Jet Airways-I employees need to vote in favour of the package offered to them in the NCLT-approved Jalan-Kalrock revival plan for the airline or lose out the same.
A five-page form has been sent to employees outlining what all they would be entitled to — including a cash payment of Rs 11,000 to Rs 22,800 to each Jet-1 employee — and they have to vote from Monday (July 5) till August 4, 2021, “for ascertaining the approval or rejection of the consortium’s proposal.”
“The consortium’s proposal (for Jet-I employees) is valid only if at least 95% of employees and workmen of Jet-1 vote in favour of it,” it says. The revival plan sees everyone, employees and financial creditors included, taking a huge haircut. For instance, Jet’s financial creditors had raised total claims of Rs 7,808 crore and the consortia has proposed to pay Rs 385 crore to them — 95% less.
For employees, the consortia offer includes a welfare trust; 0.5% equity stake in Jet-II that is estimated to have a valuation of Rs 183 crore in fifth year of operation and can be sold to raise funds; cash payment of Rs 11,000-22,800 and a phone/iPad/laptop out of existing IT assets of Jet-1 to each employee of Jet-I. About free tickets, the consortia offer to Jet-I employees includes “credits for future tickets worth Rs 10,000 to each Jet-1 ex-workforce.”
While Jet-I employees are not exactly elated with the offer, it remains to be seen how they vote for the plan. “It is a choice between nothing and almost nothing,” said a former Jet pilot who is now employed with another airline.
After securing at least 95% employees’ nod for their plan, London-based Kalrock Capital and UAE businessman Murari Lal Jalan will need to infuse Rs 600 crore in the first year. And Rs 175 crore in the second year through ECB, followed by another Rs 600 crore later on.
In all, the SRA has “proposed a total cash infusion of Rs 1,375 crore,” says the National Company Law Tribunal’s (NCLT) detailed order for the airline’s revival plan that made available last Wednesday.
Settlement of claims from this amount made on Jet-I will be limited to Rs 475 crore.
Though raising hope for the airline to fly again, there is as of now not much good news for Jet-I employees.
“Corporate Debtor (Jet-I) currently has large number of employees and workmen on its payrolls, who are otherwise not required for the day-to-day affairs hence the resolution professional did not account the salaries and other benefits due to such employees (estimated at about Rs 715 crore as of September 2020) as corporate insolvency resolution process cost,” the order states.
The SRA proposes to retain 50 employees and workmen forming part of the asset preservation team.
A five-page form has been sent to employees outlining what all they would be entitled to — including a cash payment of Rs 11,000 to Rs 22,800 to each Jet-1 employee — and they have to vote from Monday (July 5) till August 4, 2021, “for ascertaining the approval or rejection of the consortium’s proposal.”
“The consortium’s proposal (for Jet-I employees) is valid only if at least 95% of employees and workmen of Jet-1 vote in favour of it,” it says. The revival plan sees everyone, employees and financial creditors included, taking a huge haircut. For instance, Jet’s financial creditors had raised total claims of Rs 7,808 crore and the consortia has proposed to pay Rs 385 crore to them — 95% less.
For employees, the consortia offer includes a welfare trust; 0.5% equity stake in Jet-II that is estimated to have a valuation of Rs 183 crore in fifth year of operation and can be sold to raise funds; cash payment of Rs 11,000-22,800 and a phone/iPad/laptop out of existing IT assets of Jet-1 to each employee of Jet-I. About free tickets, the consortia offer to Jet-I employees includes “credits for future tickets worth Rs 10,000 to each Jet-1 ex-workforce.”
While Jet-I employees are not exactly elated with the offer, it remains to be seen how they vote for the plan. “It is a choice between nothing and almost nothing,” said a former Jet pilot who is now employed with another airline.
After securing at least 95% employees’ nod for their plan, London-based Kalrock Capital and UAE businessman Murari Lal Jalan will need to infuse Rs 600 crore in the first year. And Rs 175 crore in the second year through ECB, followed by another Rs 600 crore later on.
In all, the SRA has “proposed a total cash infusion of Rs 1,375 crore,” says the National Company Law Tribunal’s (NCLT) detailed order for the airline’s revival plan that made available last Wednesday.
Settlement of claims from this amount made on Jet-I will be limited to Rs 475 crore.
Though raising hope for the airline to fly again, there is as of now not much good news for Jet-I employees.
“Corporate Debtor (Jet-I) currently has large number of employees and workmen on its payrolls, who are otherwise not required for the day-to-day affairs hence the resolution professional did not account the salaries and other benefits due to such employees (estimated at about Rs 715 crore as of September 2020) as corporate insolvency resolution process cost,” the order states.
The SRA proposes to retain 50 employees and workmen forming part of the asset preservation team.
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