Twist in Jet Airways tale: Shadow of Dutch bankruptcy proceedings on sale process

The uncertainty regarding the sale of Jet Airways (India) grew on Wednesday as its lenders were in a fix over the bankruptcy proceedings initiated against the airline in a court based in North Holland last week. The State Bank of India-led consortium of lenders, which is now in control of the defunct airline, is conducting legal consultations to understand the implication of their plan to take possession of several Jet aircraft by paying off the airline’s debt to US Exim Bank, two officials aware of the developments said.

“We haven’t entirely given up on the idea of taking control of some of Jet’s aircraft. However, given that we are talking about three different geographies, and three different areas of jurisdiction — the Netherlands, India and the US, we are currently seeking legal advice on the impact of the bankruptcy proceedings against Jet at a Dutch court of law,” one senior banker said on the condition of anonymity.