Jet Airways' creditors to recover only $300m-$400m rupees in liquidation scenario
[MUMBAI] Creditors of India's bankrupt Jet Airways are likely to recover less than 10 per cent of the carrier's total outstanding dues in a liquidation scenario if no suitor succeeds in buying the airline, two sources told Reuters.
The airline's financial and operational creditors, who are owed nearly 300 billion Indian rupees (S$5.77 billion) are likely to recover only $300-$400 million rupees from the sale of Jet's assets, the sources, who have direct knowledge of the matter, said.
"The expected recovery on owned planes and real estate is $300-400 million rupees after repaying debt tied specifically to those assets," said one of the sources.
The sources, who asked not to be named as they have not been cleared to discuss the matter with media, said Jet currently has some four to six Boeing and Airbus aircraft, and some real estate assets in India, on which there are some outstanding dues.
The airline, less than a year ago, was operating a fleet of more than 120 planes that flew to dozens of domestic destinations and international hubs such as Singapore, London and Dubai.
Once India's biggest private carrier, Jet stopped flying in April after running out of cash, leaving thousands without jobs and pushing up air fares across the country. It was admitted to bankruptcy court in June after its lenders, led by State Bank of India, failed to agree on a revival plan.
The court-appointed resolution professional, now responsible for the company, declined to comment and said that the focus remains on resolution and not liquidation at this stage.
REUTERS
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Transport & Logistics
Heathrow faces further strike action in May from ground staff
Boeing bid for Spirit AeroSystems hits snag over Airbus assets
Tesla to cut 400 jobs in Germany via voluntary programme
GE Aerospace raises earnings goal on strong engine sales
UPS profit beats estimates as cost cuts offset weak delivery demand
General Motors beats quarterly results targets, raises forecast