Jet Airways resolution plan totters

MUMBAI: Creditors of Jet Airways and the company’s new owners are deadlocked over a resolution plan to pull the airline out of bankruptcy, putting the carrier’s future in limbo, according to sources.

Creditors may approach India’s aviation ministry to seek approval to liquidate Jet’s assets if a resolution does not emerge during a critical court hearing on Tuesday, said a senior banker.

“There have been too many delays, there are concerns the resolution plan may fall apart so we are looking to see if we can at least get something out of this deal via the liquidation route,” the banker, who has direct knowledge of the matter, said.

The resolution plan is binding upon all involved parties and was approved by the bankruptcy court, a spokesperson for Jet’s new owners said in a statement. We are “working closely” with the erstwhile lenders of Jet to implement this plan, and remain “fully committed” to getting Jet Airways off the ground, it added.

State Bank of India, the lead lender in the consortium of creditors, declined to comment. The court-appointed resolution professional overseeing the case did not immediately respond to an email request for comment. Once India’s biggest private carrier, Jet stopped flying in April 2019 after running out of cash and was taken to a bankruptcy court by creditors who were owed about 180 billion rupees ($2 billion).