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18.06.2019

Jet Airways facing bankruptcy

news

After a failed attempt to find a suitable buyer for what was once India's biggest private airline, the lenders finally taking Jet to the insolvency and bankruptcy process.

Lenders plan to bring insolvency proceedings against the struggling company, stocks plunge

Stocks impacted: Jet Airways (JETAIRWAYS)

The company owed its lenders, led by the State Bank of India, more than Rs 8,000 crore before it ceased operations. It owed suppliers and vendors much more. According to some estimates, the total dues to vendors, lessors, other suppliers and creditors at well over Rs 20,000 crore. As a reminder, the airline suspended all international flights in April. The insolvency process, if successful, will allow lenders such as State Bank of India to begin selling parts of the business in order to recover some of the money they are owed. The company’s shares plunged nearly 40% on the news.

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