Aviation News

Jet Airways' creditors to recover only $300-$400 million in liquidation scenario

 Creditors of India's bankrupt Jet Airways are likely to recover less than 10% 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 ₹30,000 crore ($4.20 billion) are likely to recover only $300-$400 million 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 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.


Jet Airways' creditors to recover only 10% of total dues in liquidation scenario.


With just one more day to go before the deadline to submit EoI for Jet Airways expires, all efforts are being made to woo as many suitors as possible.


But, it is turning out to be a tough task to get more expressions of interest.


Sources told Moneycontrol that the resolution professional - Ashish Chhawchharia - overseeing the insolvency process reached out to several companies, including those who had earlier showed interest but then kept away.


The deadline expires on August 31.


“We have been invited to submit a bid. But we are not sure, unless there are assurances on a few things,” said a senior executive from one of the companies approached by Chhawchharia.


The assurances sought were for the return of Jet Airways’ airport slots and flying rights that have been distributed among its peers. The airline also has just a fraction of its original fleet of 119 aircraft.


The companies are also wary about delays in the resolution process. As per the original schedule, the final list of prospective bidders was to be disclosed on August 21.
Following this, the bidders had to submit their resolution plans by September 12. And, the selected resolution plan was to be submitted to the National Company Law Tribunal (NCLT) by September 27.



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