Lenders have decided to refer Jet Airways for bankruptcy proceedings after failing to get investors for the grounded airline.
"After due deliberations, lenders have decided to seek resolution under IBC since only a conditional bid was received," said the lenders led by the State Bank of India, referring to Insolvency and Bankruptcy Code.
The airline halted operations on April 17 after its lenders refused to provide further funds to keep it afloat. Once India’s largest private carrier, it had more than 16,000 employees and flights to dozens of international destinations.
Jet's collapse has left thousands without jobs and pushed up air fares across the country.
Jet Airways owes more than Rs 8,000 crore to a consortium of banks led by the State Bank of India, which now run the airline, while it has a much larger debt pile by way of accumulated losses to the tune of Rs 13,000 crore and vendor dues of over Rs 10,000 crore and salary dues of over Rs 3,000 crore, reported news agency PTI.
Read our full coverage on Jet
"After due deliberations, lenders have decided to seek resolution under IBC since only a conditional bid was received," said the lenders led by the State Bank of India, referring to Insolvency and Bankruptcy Code.
The airline halted operations on April 17 after its lenders refused to provide further funds to keep it afloat. Once India’s largest private carrier, it had more than 16,000 employees and flights to dozens of international destinations.
Jet's collapse has left thousands without jobs and pushed up air fares across the country.
Jet Airways owes more than Rs 8,000 crore to a consortium of banks led by the State Bank of India, which now run the airline, while it has a much larger debt pile by way of accumulated losses to the tune of Rs 13,000 crore and vendor dues of over Rs 10,000 crore and salary dues of over Rs 3,000 crore, reported news agency PTI.
Read our full coverage on Jet
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