The revival of Jet Airways is now possible only under Insolvency and Bankruptcy Code (IBC), the Centre on Thursday said in the first official confirmation that hopes of recovery of India’s once second largest airliner have all but ended. This is the first case of bankruptcy in the aviation sector.
The grounded airline came to the brink of closure as the lender’s consortium led by State Bank of India refused to infuse the committed interim fund of Rs 750 crore, as promoters, who were supposed to bring the rest of Rs 1,500 crore, could not bring in full amount of their share, Minister of State for Civil Aviation Hardeep Singh Puri informed the Lok Sabha.
“To mitigate the immediate operational crisis faced by the company, interim funding of Rs 1,500 crores was proposed. Out of this, promoters were expected to bring in Rs 750 crore and the lenders would provide the remaining amount. Read More