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Rough flight ahead for Jet as legal worries loom large over revival plan

Some experts are of the view that the debt-equity swap is only a matter of change in the books of account, and will not necessarily change the quality of Jet's assets

Jet Airways
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Sudipto Dey
The clock ticks on the bank-led corporate restructuring exercise at Jet Airways. However, legal uncertainties that involve prospective investors, the employees and the operational creditors could make finding an early resolution to Jet’s financial woes challenging, say experts. This is the first instance of action by banks in a debt-riddled, financially-stressed services company under ‘Project Sashakt’. The 180-day period to resolve Jet’s financial stress started on January 1. If no resolution is found within this period, Jet Airways could slip into bankruptcy proceedings under the provisions of the Insolvency and Bankruptcy Code.

Legal experts say per se there does not seem

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First Published: Mar 31 2019 | 9:05 PM IST

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