Mumbai: Harried bankers Monday decided against an outright sale of Jet Airways to the lone bidder, instead voted to send it for bankruptcy to recover their Rs 8,000 crore dues.
The once largest private sector airline, started over 25 years ago by airline-ticketing-agent-turned-entrepreneur Naresh Goyal, stopped flying on April 17 after it ran out of cash and the unpaid lessors took away most of its 100-odd operational airplanes.
The nascent bankruptcy process has been fraught with inordinate delays with only a fraction of the cases have been resolved within the timeline, while the asset in on the books of the once the largest airliner are just fraction of its dues which run into over Rs 36,000 crore.
After a meeting of the 26 lenders here Monday, SBI in a statement said, "after due deliberations, the lenders have decided to seek resolution for Jet Airways under the bankruptcy code since only a conditional bid was received".
The statement further said the move was necessitated as the prospective investor wants some Sebi exemptions for a possible deal which can be worked out better under the bankruptcy laws.
The decision of the lenders to seek bankruptcy process through the NCLT comes exactly two months after the airline stopped flying on April 17, after being on the fringe since last July.
The Etihad-Hinduja consortium had reportedly shown interest but not given a concrete proposal yet, forcing the lenders to take the NCLT plunge as they have asked for a large haircut from the lenders.
The decision also comes amidst reports of Goyal being put on a lookout notice by federal law enforcement agencies and also launching a money laundering probe against him.
The grounding of Jet Airways, which was the largest full service carrier left over 23,000 employees unpaid for months in the lurch, and also sent airfares soaring by over 40 percent on average. And even after two months, prices are yet to normalise.
18/06/19 PTI/ZeeNews
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The once largest private sector airline, started over 25 years ago by airline-ticketing-agent-turned-entrepreneur Naresh Goyal, stopped flying on April 17 after it ran out of cash and the unpaid lessors took away most of its 100-odd operational airplanes.
The nascent bankruptcy process has been fraught with inordinate delays with only a fraction of the cases have been resolved within the timeline, while the asset in on the books of the once the largest airliner are just fraction of its dues which run into over Rs 36,000 crore.
After a meeting of the 26 lenders here Monday, SBI in a statement said, "after due deliberations, the lenders have decided to seek resolution for Jet Airways under the bankruptcy code since only a conditional bid was received".
The statement further said the move was necessitated as the prospective investor wants some Sebi exemptions for a possible deal which can be worked out better under the bankruptcy laws.
The decision of the lenders to seek bankruptcy process through the NCLT comes exactly two months after the airline stopped flying on April 17, after being on the fringe since last July.
The Etihad-Hinduja consortium had reportedly shown interest but not given a concrete proposal yet, forcing the lenders to take the NCLT plunge as they have asked for a large haircut from the lenders.
The decision also comes amidst reports of Goyal being put on a lookout notice by federal law enforcement agencies and also launching a money laundering probe against him.
The grounding of Jet Airways, which was the largest full service carrier left over 23,000 employees unpaid for months in the lurch, and also sent airfares soaring by over 40 percent on average. And even after two months, prices are yet to normalise.
18/06/19 PTI/ZeeNews
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