Jet lenders hit a recovery roadblock abroad

MUMBAI: A plan by domestic lenders to take control of six aircraft owned by Jet Airways (India) Ltd has run into rough weather after a Dutch court ordered bankruptcy proceedings against the grounded airline last week, two people with direct knowledge of the matter said.

The lenders to Jet Airways, led by State Bank of India (SBI), were in talks to buy out a $30 million loan taken from US Exim Bank for which the six Boeing aircraft were given as collateral, the people cited above said on condition of anonymity.

“The lenders expected to recover at least $200 million of Jet’s unpaid loans by acquiring the aircraft, each roughly valued between $40 million and $60 million and selling them to a third party if Jet fails to revive,” said one of the two people cited earlier.