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Good outcome from Jet, lenders' talks better than insolvency: Govt official

Good outcome from Jet, lenders' talks preferable to insolvency process: Govt official

Press Trust of India  |  New Delhi 

Jet Airways

As battles acute financial woes, a Monday said a "good outcome" from the negotiations between the creditors and the company would be better than moving for proceedings under the law.

"I think creditors and the debtor are in discussion. That is the best process," said.

He was responding to a query on whether is a fit case to be referred under the and Code (IBC).

"If there is a good outcome from the negotiations between the creditors and the corporate debtor, then that is better than dragging into .. but if that (insolvency) is only option left at that stage, then bankers will take a call," he noted.

The cash-strapped airline, which has been operating for over 25 years, is looking to restructure its debt, estimated to be more than Rs 8,000 crore, as well as raise fresh funds.

Lenders of the crisis-hit are likely to acquire a substantial stake in the carrier till a new promoter is roped in, sources said last week.

Noting that the IBC is the last resort, Srinivas said that if there is inherent capacity for a company to bounce back, then it is best for members of the company and the creditors to try and see how it can be resolved.

"If there is no agreement between the creditors and shareholders, then you will have to look at other possibilities, including that of the IBC," he said.

He was replying to a query regarding Jet Airways on the sidelines of a conference organised by industry body CII.

In afternoon trade, shares of Jet Airways rose nearly three per cent to Rs 232.35 on the BSE.

First Published: Mon, March 25 2019. 13:15 IST