Creditors file for Jet Airways’ bankruptcy

Two of Jet Airways’ creditors have lost patience and have filed petitions with the National Company Law Tribunal to have the grounded airline made bankrupt.

Shaman Wheels Pvt Ltd and Gaggar Enterprises Pvt Ltd filed separate insolvency pleas against Jet Airways.

The NCLT will consider the pleas this week and if accepted could spell the end for the airline finally.

The consortium of lenders, led by the State Bank of India, which effectively controls what id left of the airline, have chosen not to petition for bankruptcy so far as it would severely limit what that can get back in unpaid debts

If it is accepted, the lenders would likely have to join the list of aggrieved creditors and face getting back only a fraction of what they are owed.

The lenders have been trying hard to resolve the crisis outside bankruptcy resolution, and SBI Chairman recently said bankruptcy proceedings was a last resort if all else failed.

SBI has so far failed to secure a new investment partner  prepared to invest in Jet, and time is now running out.

The banks are owed more than $1 billion.

 "If the petition is admitted, it’s the end of the road for the airline. We are not very hopeful of recovering our dues in bankruptcy as the other liabilities are much bigger than bank loans," a banker told the Economic Times newspaper..

Jet Airways was grounded on April 17 after finally running out of funds to keep its dwindling fleet of aircraft operating.