Jet Airways Liquidation

The fate of around 1.48 lakh retail shareholders who hold around 20 per cent stake in the beleaguered Jet Airways remains uncertain after the Supreme Court ordered the liquidation of Naresh Goyal-led grounded airline.

Jet Airways' grounded assets will be liquidated, the Supreme Court said, invoking 'extraordinary' powers under Article 142 to set aside a National Company Law Appellate Tribunal decision upholding resolution and approving transfer of ownership.

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.

Jet Airways stopped flying in April after running out of cash, leaving thousands without jobs and pushing up air fares across the country.

Facing a severe liquidity crisis, Jet Airways had suspended its operations on April 17 and remains grounded

Jet Airways had last week suspended its operations indefinitely amid a severe liquidity crisis. With a debt more than $1.2 billion, the cash-strapped airline owes money to lessors, suppliers, pilots and oil companies.

The airline, which is operating only five planes, said its operations have been severely impacted due to critical liquidity position.

Saddled with a debt of about Rs 8,052 crore ($1.14 billion) as of September 30, Jet is desperately searching for a deal that could help mitigate its severe liquidity crunch.

Sources in the aviation industry in Abu Dhabi have confirmed to ANI that Etihad Airways has green lighted JPPL, Jet's Frequent Flyer Programme which is majority-owned by Etihad, to enter into an agreement that will provide Jet immediate liquidity of $35 million to help it meet some of its current obligations including staff salaries.

Bond yields and rupee movements will be closely watched as investors wait for a signal from the RBI on how long it expects to stick with its liquidity tightening measures.

The fate of around 1.48 lakh retail shareholders who hold around 20 per cent stake in the beleaguered Jet Airways remains uncertain after the Supreme Court ordered the liquidation of Naresh Goyal-led grounded airline.

Jet Airways' grounded assets will be liquidated, the Supreme Court said, invoking 'extraordinary' powers under Article 142 to set aside a National Company Law Appellate Tribunal decision upholding resolution and approving transfer of ownership.

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.

Jet Airways stopped flying in April after running out of cash, leaving thousands without jobs and pushing up air fares across the country.

Facing a severe liquidity crisis, Jet Airways had suspended its operations on April 17 and remains grounded

Jet Airways had last week suspended its operations indefinitely amid a severe liquidity crisis. With a debt more than $1.2 billion, the cash-strapped airline owes money to lessors, suppliers, pilots and oil companies.

The airline, which is operating only five planes, said its operations have been severely impacted due to critical liquidity position.

Saddled with a debt of about Rs 8,052 crore ($1.14 billion) as of September 30, Jet is desperately searching for a deal that could help mitigate its severe liquidity crunch.

Sources in the aviation industry in Abu Dhabi have confirmed to ANI that Etihad Airways has green lighted JPPL, Jet's Frequent Flyer Programme which is majority-owned by Etihad, to enter into an agreement that will provide Jet immediate liquidity of $35 million to help it meet some of its current obligations including staff salaries.

Bond yields and rupee movements will be closely watched as investors wait for a signal from the RBI on how long it expects to stick with its liquidity tightening measures.