State Bank of India (SBI), the lead banker to Jet Airways, on Tuesday filed insolvency plea against the crisis-hit airline under section 7 of Insolvency and Bankruptcy Code (IBC) at the National Company Law Tribunal (NCLT), Mumbai.
The tribunal will be hearing the plea on June 19. Unable to find a taker after months of negotiations, the consortium of lenders led by SBI finally decided on Monday to take the grounded airline to the bankruptcy court for resolution. Jet Airways is sitting on a debt pile of Rs 8,500 crore.
“Lenders led by State Bank of India have been taking efforts to find a resolution for Jet Airways outside IBC but in view of the above, lenders have decided to seek a resolution within the IBC process," Jet Airways said in a statement. Moreover, two operational creditors — Shaman Wheels and Gaggar Enterprises — had earlier moved the NCLT. The tribunal has posted the matter for admission on June 20.
Jet airways has been grounded since April 17. Although it was initially termed as temporary grounding, however, it never flew again.