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Two Jet suppliers seek to land airline in bankruptcy court
Date: June 10,2019
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Two Jet suppliers seek to land airline in bankruptcy court


  Two Jet suppliers seek to land airline in bankruptcy court


As per the reports Economic Times (ET), The Mumbai bench of the bankruptcy court is scheduled to hear on Monday about the insolvency petitions filed against Jet Airways by two of its suppliers, a development that could hurt the efforts of banks to cobble together a deal with investors to revive the grounded airline.

Banks have so far tried to keep Jet out of court-monitored insolvency proceedings, as sought now by the two operational creditors, as they wanted to maximise the money they could recover from the debt-ridden airline. If the National Company Law Tribunal (NCLT) accepts the pleas of Shaman Wheels and Gaggar Enterprises under the Insolvency and Bankruptcy Code (IBC), these financial creditors would also have to become party to the case to recover their money.

 “We have to see what the Mumbai NCLT decides. If the petition is admitted, it is the end of the road for the airline,” said a banker aware of the development. “We are not very hopeful of recovering our dues in bankruptcy as the other liabilities are much bigger than bank loans. We will have to see if other creditors will be treated on par with financial creditors.” The government and banks have been trying to find a resolution to the debt crisis since Jet started defaulting on payments five months ago, but have so far failed to come up with any concrete proposals.

Edition reported that the Hinduja Group might partner with UAE’s Etihad Airways to rescue the Indian airline. But, there haven’t been any announcements yet.

In March this year, founder Naresh Goyal and wife Anita Goyal stepped down from the board of the airline, in what was seen as a condition set by potential investors. Goyal and his wife were recently stopped from flying to Dubai by the immigration authorities in Mumbai, after a lookout circular was issued against them by the ministry of corporate affairs that is examining Jet’s books for any fund diversions.

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