With hopes of revival gradually fading for beleaguered Jet Airways, banks are understood to be moving to strengthen their collateral so that if recovery proceedings are initiated, their own chances of recovery are better.
Domestic lenders are considering paying off US EXIM Bank Rs. 400 crore in order to get first charge of Jet Airways’ five aircraft. Lenders have an exposure of Rs. 11,261 crore in the airline.
“Banks are trying to strengthen their security. Jet Airways owns five aircraft that have been financed by US EXIM on the back of a stand-by letter of credit issued by State Bank of India. US EXIM currently has first charge over these aircraft.
