Beleaguered airline Jet Airways has now landed at the NCLT (National Company law Tribunal). Two operational creditors — Shaman Wheels and Gagar Enterprises, have approached the insolvency court for the recovery of their dues. The matter will be heard today. If the court accepts the plea, it could mark the end of the road for Jet Airways.
If the plea is accepted, the lenders too will join the aggrieved parties.
SBI Chairman in an exclusive interview to India Today TV last month had said that NCLT was the last option for the banks and that they were hopeful of a resolution. But for now, no investor has come forward to proactively stake claim to the grounded airline.
The banks have been trying to avoid the insolvency court to recover the maximum dues. In the scenario of NCLT accepting the petition, the banks will have to join the plea and will be staring at a huge haircut on their dues.
Last heard, the Hinduja Group too had not submitted the final proposal and talks seemed to have stagnated. Etihad Airways, which doesn’t want a majority stake, has also not come out with the final proposal of being a majority stakeholder. It is also believed that Etihad has set new demands before it gets on-board.
Jet Airways shut operations on April 17 due to a liquidity crunch. The airline has a debt pile of over Rs 11,000 crore and all the investors who expressed the desire to invest in the airline have asked the banks to take a substantial haircut if Jet Airways has to see the light of the day again.