United Kingdom
United States
Asia Pacific
Jet Airways creditors may recover only a fraction of total dues if liquidated
Jet Airways’ frustrated creditors are only likely to get a small fraction of the money they are owed if the airline is finally wound up.
The bankrupt airline only has about US$300-400 million in usable assets, which is less than 10% of its debt which is estimated at US$4.2 billion.
"The expected recovery on owned planes and real estate is US$300-400 million after repaying debt tied specifically to those assets," a person familiar with the bankrupcy resolution process told Reuters.
The airline only has a few owned planes and some real estate assets.
Most of its 100-plus aircraft fleet was repossessed by lessors which led to its eventual grounding earlier this year.
It finally ran out of cash in April.
The airline has more than 2,000 creditors which includes vendors, suppliers and employees still awaiting salaries.
There is hope it can still be sold off in part or full to maximize payments to creditors but will still likely fall well short of its total debts.
Three foreign companies made expressions of interest to take over the business and two of these have now been shortlisted.
However there is no certainty either of these will ultimately become the new owner due to India’s complex foreign ownership rules.
Related News Stories:
TravelMole Editorial Team
Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
Kittipong Prapattong’s Plan for Thailand’s Tourism Growth: Taxes, Visas, and Campaigns
James Jin: Didatravel’s Journey from China to Global Reach and the Impact of AI on Travel
Darien Schaefer on Pensacola’s Evolution: From Small Town to Global Destination
Florida Tourism’s Next Frontier: Dana Young on Expanding Beyond the Classics
Patrick Harrison on Tampa Bay Tourism’s Resilience and Marketing Strategy
Bubba O’Keefe on Clarksdale’s Vibrant Music Scene
Commemorating Elvis and Embracing Tupelo’s Culture with Jennie Bradford Curlee
Craig Ray and the Expansion of the Blues Trail
Presenting Mississippi’s Cultural Trails with Katie Coats
Robert Terrell: A Journey Through BB King’s Influence
Rochelle Hicks: Celebrating Mississippi’s Musical Legacy
Exploring Jacksonville with Katie Mitura: The Flip Side of Florida
Dozens fall ill in P&O Cruises ship outbreak
Turkish Airlines flight in emergency landing after pilot dies
Boy falls to death on cruise ship
Unexpected wave rocks cruise ship
Storm Lilian travel chaos as bank holiday flights cancelled