An SBI-led consortium of banks is set to take
Jet Airways to
NCLT under the
Insolvency and Bankruptcy Code as efforts to seek resolution outside of IBC didn't materialise.
The statement from the lenders said: “A meeting of lenders was held today to consider the way forward in respect of Jet Airways. After due deliberations, Lenders have decided to seek resolution under IBC since only a conditional bid was received and requirement of the Investor for SEBI exemptions and resolution of all creditors is possible under IBC."
Lenders led by State Bank of India have been taking efforts to find a resolution for Jet Airways outside IBC but in view of the above, Lenders have decided to seek a resolution within the IBC process."
Jet Airways, which stopped operations on April 17 as it ran out of cash, has debt of Rs 8,500 crore on its books with liabilities adding up to Rs 25,000 crore.
The Hinduja Group and
Etihad, which were reportedly considering bailing out the ailing carrier, didn't come forward with a formal proposal.
Meanwhile, the Mumbai bench of the bankruptcy court is scheduled to hear insolvency petitions by two suppliers to Jet Airways on June 20.
Banks have so far tried to keep Jet out of court-monitored insolvency proceedings as they wanted to maximise the money they could recover from the debt-ridden airline.