How Jet Airways, DHFL insolvency cases highlight gaps in IBC

Lenders and insolvency professionals in India walked into uncharted territories this year by taking Jet Airways and Dewan Housing Finance Corporation (DHFL) to the insolvency court. Both cases will pave the way forward for resolution of the aviation and financial services sectors, respectively, under the Insolvency and Bankruptcy Code, 2016, (IBC).

Timely recognition of stress and the treatment of a variety of stakeholders emerged as key challenges. Jet Airways, which was the country’s second largest by market share till last year and was grounded in April 2019, is the first airline to undergo resolution under IBC.