The alliance of banks led by State Bank of India (SBI) has abandoned its efforts to re-establish the private sector jetty jetty Jet Airways. The collusion of the banks has decided to send the case to the National Companies Law Tribunal (NCLT) for action under the bankruptcy code to resolve the debt trapped in this airline.
Banks have to recover Rs 8,000 crore from the airline. Today, Jet Airways is trading at Rs 58.15 with a fall of 14.99 percent. Jet Airways was the largest private airline in the country. 25 years ago Naresh Goyal started this airline as an entrepreneur by ticketing agent.
No substantial proposal has been received from any unit for the revival of this airline, immersed in debt in the efforts of the banks so far. Although the Etihad-Hinduja alliance has shown interest in the airline but no substantial proposal has been received from her. For this reason, the decision to send the airline case to NCLT in the meeting of the banks on Monday was decided.
This decision has been taken after the reports that federal law enforcement agencies have kept Goyal in the monitoring notice. At the same time they are going to start a money laundering investigation against them.
Jet Airways operations are closed from April 17. This has not paid the salaries of 23,000 employees of the airline for several months. It has also increased average air fares by 40 percent.
The airline's slots on the domestic airports have given the government to other aviation companies. Some of its slots on the international airports have been given to other airlines.
SBI said in the statement that after intensive consultation, the lenders have decided that the issue of Jet Airways will be settled under the Code of Diva.
The statement said that this move is necessary because the potential investor wants some relaxation of SEBI under the deal. This kind of deal can be better under bankruptcy and refinement codes of incompetence.
The bank said that the lenders wanted the settlement of the steep Aviation Company to be settled out of the Diwali Code (IBC) but now the decision has been taken to settle under the IBC itself.
It is to be noted that two firms lending in commercial deals with Jet Airways, Shimane Wheels and Gaggard Enterprises had appealed to the NCLT on June 10 to start the bankruptcy process against the airline. The tribunal has not yet filed these petitions for the hearing. The tribunal said on June 13 that he will look into the matter on June 20.
NCLT has asked the concerned parties to send a legal notice to Jet Airways. Shamenwill's airline is owed 8.74 crores and Gaggar's Rs 53 crores on the airline.
The alliance of SBI-led banks on Jet Airways is owed more than Rs 8,000 crore. Right now the airline is being operated by the banks. This is the total loss of Jet Airways at Rs 13,000 crore. 10,000 crore of goods and services to the airline and 3,000 crores of salaries for employees is outstanding.
