The Jet Airways crisis could eventually head towards insolvency if the creditors fail to reach a consensus on a resolution plan, a senior official said on Monday.
"The creditors and the debtors are in discussion. That's the best process. If there is a good outcome of these negotiations between the creditors and the corporate debtor, then that's better than dragging it to insolvency. But if that's the only option left (going to the Insolvency and Bankruptcy Code -IBC- process), then the bankers will have to take a call at that stage," Corporate Affairs secretary Injeti Srinivas said at an industry chamber CII event here on insolvency.
"IBC is a possibility for Jet Airways if the creditors cannot agree on a resolution plan", he said.
State-run State Bank of India (SBINSE 0.69 %) Chairman Rajnish Kumar last week had said airlines being a service industry should not be brought under insolvency.
"For service industry , resolutions under IBC is near impossible and means grounding the airline " he had said, making it clear Jet Airways was not heading towards the National Company Law Tribunal's (NCLT) insolvency process as the lenders fear that would only make it impossible to recover any dues.
"So we will try till such time, and we have not reached the point where we can give up..IBC is the last option in recovery process", he said.
25/03/19 IANS/Economic Times
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"The creditors and the debtors are in discussion. That's the best process. If there is a good outcome of these negotiations between the creditors and the corporate debtor, then that's better than dragging it to insolvency. But if that's the only option left (going to the Insolvency and Bankruptcy Code -IBC- process), then the bankers will have to take a call at that stage," Corporate Affairs secretary Injeti Srinivas said at an industry chamber CII event here on insolvency.
"IBC is a possibility for Jet Airways if the creditors cannot agree on a resolution plan", he said.
State-run State Bank of India (SBINSE 0.69 %) Chairman Rajnish Kumar last week had said airlines being a service industry should not be brought under insolvency.
"For service industry , resolutions under IBC is near impossible and means grounding the airline " he had said, making it clear Jet Airways was not heading towards the National Company Law Tribunal's (NCLT) insolvency process as the lenders fear that would only make it impossible to recover any dues.
"So we will try till such time, and we have not reached the point where we can give up..IBC is the last option in recovery process", he said.
25/03/19 IANS/Economic Times
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