After owning over Rs 36,500 crore in debt obligations, India’s Jet Airways has now been approved for bankruptcy.
The country’s National Company Law Tribunal has approved the decision after State Bank of India led 26 others banks to drag the national carrier to the NCLT to recover over Rs 8,500 crore owed them.
The announcement came so few hours after the shares of the airline soared by over 100% on the Bombay Stock Exchange. The exchange had sought clarification from Jet Airways, an incident that suggested speculations in the stock of the company.
The problem of Jet Airways seems to hydra-headed and the airline seems to be at a dead-end. Apart from the fact that it is owing to major creditors, suppliers and employees, the airline has also failed to get conclusive bids from prospective buyers.
According to a report by IndianToday, the lingering debt crisis at the airline has cut Etihad’s 24 percent stake, the Qatari national carrier has also lost its board representation as well as Naresh Goyal. the airline’s founder/chairman and his wife Anita.