Jet Airways’ creditors said yesterday that they plan to begin insolvency proceedings against the Indian airline in a last-ditch bid to find a buyer for the carrier or its remaining assets and recover some of what they are owed, Reuters reported. Once India’s biggest private carrier, Jet Airways stopped flying in April after running out of cash, leaving thousands without jobs and pushing up air fares across the country. “Lenders have decided to seek resolution under IBC since only a conditional bid was received,” they said in a statement, referring to India’s Insolvency and Bankruptcy Code. This process will allow Jet’s lenders, led by State Bank of India, to sell the company as a whole or sell its assets piecemeal to maximize recovery for creditors and bring to an end weeks of uncertainty over the airline’s future. Jet and its lenders have been searching for new investors but have failed to agree a proposal.
