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UAE-based entrepreneur Murari Lal Jalan, one of the proposed promoters of Jet Airways, is in advance discussions with the Uzbekistan government to start a full-service airline and develop an airport in that country. This was disclosed to the Mumbai Bench of NCLT, which is hearing the resolution plan for the debt-strapped Jet Airways submitted by the Kalrock-Jalan Consortium.
The counsels representing the consortium said that “while Jalan’s core area of business is into paper manufacturing and trading, photographic products, commodities, hospitality, real estate among others, he isn’t a novice in the aviation industry.”
Also read: Jet will connect regional cities to international destinations: Murari Lal Jalan
A document reviewed by BusinessLine stated that Jalan “Jalan is in advance discussions with the government of the Republic of Uzbekistan and the state government of Namangan for developing a new airport in Namangan city, Uzbekistan and for setting up a new full-service airline in collaboration with the government of the Republic of Uzbekistan and the state government of Namangan.”
He will be the majority shareholder in the airport and the airline entity. The airline will give a major boost to the aviation and tourism sector in Uzbekistan. During its first phase of the launch, it will cater to CIS countries and the European Union along with expanding to all major destinations in the next three-five years.
The airline is scheduled to launch Q1 of 2021 with more than 25 aircraft with a mix of B737 Max, Airbus A330, and Boeing 787 Dreamliner, which was delayed due to the covid-19 pandemic.
The airline will also have a charter aircraft company as its wholly-owned subsidiary to cater HNIs and Ultra HNIs, which will have a fleet of Bombardier, Hawkers, and Augusta aircraft and helicopters.
According to the brief profile submitted with the resolution plan to the insolvency courts, as of December 31, 2019, Jalan’s networth is approximately ₹979 crore, whereas Fritsh’s individual networth is ₹1,770 crore.
“Jalan has a networth of ₹979 crore and is set to invest ₹375 crore equity in Jet Airways, the rest of it will be debt,” the counsel said.
The consortium also has in-principle investment letters from at least four Indian companies that are willing to back the consortium for ₹50-100 crore.
Whereas the core area of Fritsch’s expertise, who is the principal shareholder of Kalrock Group is spread access real estate, technology entrepreneurship, and special situations investments and turnarounds.
“ Fristsch is experienced in restructuring businesses through equity, debt and hybrid investments. He has personally financed several multi-million 60 transactions.”
“The fresh fund to be brought by the Resolution Applicants may primarily be utilized for making a necessary capital expenditure, working capital requirements, and to settle dues of all the existing creditors and stakeholders Corporate Debtor,” it added.
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