A mint-fresh revival plan for financially battered Jet AirwaysNSE -2.30 % drawn by its lenders has likely come undone after India’s apex court declared rules governing the plan unconstitutional and ultra vires or done beyond one’s legal power or authority.
The first step of the plan is to give Jet’s lenders a controlling 50.1 per cent stake in the airline for a value of Rs 1. This is based on a circular by the Reserve Bank of India on February 12 that overhauled debt restructuring rules for companies that have defaulted on loans. Jet has defaulted to its Indian and overseas lenders.
