The Jalan Kalrock Consortium (JKC), the would-be new owners of Jet Airways (JAI, Mumbai International), is hoping to secure a 30 day extension to what was a August 31 deadline to pay creditors INR3.5 billion Indian rupees (USD42.1 million).

After receiving multiple time extensions to pay creditors, the end of August deadline is shaping up as a critical moment for the consortium, who have publicly stated that they have access to sufficient capital to meet creditor payments and restart the airline.

The State Bank of India lead creditor’s committee has recently begun pushing for the tribunal to void the previously agreed resolution plan and order the liquidation of Jet Airways, saying this was the only way they would ever see any return. However, the committee has also said that they may drop that application if JKC meets the August 31 deadline.

During an August 18 hearing, Ravishankar Prasad, appearing for JKC, said his client proposed paying INR1 billion (USD12 million) on or before August 31, a further INR1 billion on or before September 30, and said the creditor’s committee can cash a INR1.5 billion (USD18 million) at their convenience. On the day, the tribunal said the consortium needed to be clearer on why they were seeking the time extension and the conditions of the proposed adjustments to the deadline, adjourning the matter until August 21.

On the second date, Prasad defended the validity of the bank guarantee and its inclusion in the new payment plan. General N Venkatraman, appearing for the lenders, said the bank guarantee was already committed to covering other expenses of the resolution plan and could not be part of the proposed new plan. However, Prasad said the bank guarantee could be used as security to cover the INR3.5 billion due, per the original NLCT-approved resolution plan. He also accused the creditor’s committee of lacking commitment to relaunching the airline, arguing that it preferred liquidation as a final outcome.

Venkatraman said that was not the case but asked, “how do we reach the end of the long tunnel of recovering INR78 billion (USD938.4 million) if we are struggling for INR3.5 billion?”

The NCLAT has reserved judgement on the extension request and validity of the bank guarantee. It has set an August 28 date to hand down its orders, just three days before the current deadline expires.