 "SBI declares Jet Airways’ liquidation imminent as bidders fail to pay dues, escalating tensions in India’s volatile aviation sector.")
The State Bank of India (SBI) has expressed concern over the ongoing issues with the bankrupt airline Jet Airways, stating that the buyer, Jalan Kalrock Consortium (JKC), is refusing to pay outstanding dues. During a Supreme Court hearing, SBI indicated that liquidation may be the only option left for the airline, as JKC has failed to make a required payment of Rs 350 crore despite multiple extensions. The court will hear arguments from JKC next week, while SBI claims that they have faced difficulties with multiple airlines in the past. This situation highlights the challenges in India’s aviation sector, which has seen several airlines struggle financially in recent years.
Lenders of Jet Airways, spearheaded by the State Bank of India (SBI), are pushing for liquidation of the bankrupt airline after the Jalan Kalrock Consortium (JKC) reportedly refused to pay the owed dues. On September 26, 2024, during a Supreme Court hearing, Additional Solicitor General N. Venkataraman strongly stated that “liquidation is the only option remaining,” emphasizing that the SRA has not met the conditions of the resolution plan.
SBI has claimed that the total admitted claims against Jet Airways amount to nearly Rs 7,800 crore, while JKC’s proposed financial package was only Rs 4,783 crore, to be paid in installments over five years. Despite receiving multiple extensions, JKC has failed to make the initial payment of Rs 350 crore that was due by March 2022.
In a tense court session, JKC’s legal representative accused SBI of undermining airlines, citing previous failures with Air India and Kingfisher Airlines. The Supreme Court is set to hear further arguments from JKC on Tuesday, following a recent order from the National Company Law Appellate Tribunal which initially approved the airline’s ownership transfer to JKC.
This ongoing situation highlights the volatile nature of India’s aviation sector, where several airlines have faced financial instability in recent years, including Go First’s recent insolvency filing. As the case unfolds, all eyes are on the court’s decision, which could significantly impact the future of Jet Airways and the broader industry.
Tags: Jet Airways, SBI, Jalan Kalrock Consortium, Supreme Court, airline bankruptcy, aviation industry, NCLT, financial crisis, corporate liquidation.
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What does JKC’s case against Kingfisher and Air India involve?
JKC is asking the Supreme Court to look into how the State Bank of India handled loans given to Kingfisher and Air India, as they believe there were issues with the bank’s actions. -
Why are these airlines significant in the case?
Kingfisher and Air India represent major players in India’s aviation industry, and their financial struggles have impacted the economy and many employees. -
What is the Supreme Court’s role in this situation?
The Supreme Court will review the case to determine if there were any legal failures or mismanagement regarding the loans provided to these airlines by the State Bank of India. -
What could happen if the Supreme Court finds issues with the loans?
If the court finds problems, it could lead to investigations, possible penalties, or changes in how the bank and airlines operate in the future. - How does this affect regular people?
The outcome of this case could influence job security for airline employees and impact how banks lend money to big companies in the future, which may affect the economy overall.
