Jet Airways is officially bankrupt. After exhausting all revival options, Jet's lenders, led by State Bank of India, has finally taken the airline to the National Company Law Tribunal (NCLT) for resolution under the Insolvency and Bankruptcy Code (IBC). With most of its assets gone, the lenders of Jet - both financial and operational - have a snowball's chance in hell to recover even half of their dues.
The biggest tangible asset for Jet is its owned aircraft - 10 Boeing 777s and six A330s. The US Exim Bank is planning to take over the Boeing 777s after the airline defaulted on its debt payments. The equity value of A330s is estimated at Rs 2,500 crore which is far short of Jet's current liabilities of over Rs 17,000 crore. Even liquidation of Jet's assets is expected to be a long drawn out process. For whatever little they might get, the lenders will have to wait for some time to see flotsam and jetsam in their hands.