Jet Airways Files For Bankruptcy
A final deal has been struck with lenders and the State Bank Of India (SBI) who announced that they will go to court and file for Bankruptcy.
Jet Airways stopped operations on April 17th 2019. A final deal has been struck with lenders and the State Bank Of India (SBI) who announced that they will go to court and file for Bankruptcy. They have requested court will then taken over and sell all the assets of the company in order to repay the lenders recover the Rs 15,000 crore debt.
Jet had collected Rs 3,500 crore from passengers in advance bookings but could not continue flying because they ran out of cash. Experts have said that they should have stopped flying much earlier. Instead they continued to keep the airlines open and used most of the cash reserves.
Jet had a strong hope that Etihad Airlines or Hinduja Group would repay the debts and save the airline. However this did not happen and the airlines had to file for bankruptcy. This is the second Indian airline to file for bankruptcy in 7 years. Kingfisher had filed for bankruptcy in 2012. After the announcement of Jet filing bankruptcy, the value for one Jet Airways share fell by 40%. It became Rs 32.25.