DNA Money Edit: Can lenders still revive Jet Airways?

The hope of reviving the grounded Jet Airways is fading fast. The lenders' consortium, led by State Bank of India (SBI), is still scouting for new investors, even after the carrier has lost most its aircraft to lessors and its slots taken back. Lenders are likely to take a final call soon, and chances are that they will file for bankruptcy. The big question remains if the lenders can recover at least a part of the Rs 8,500 crore debt from the exercise.

Etihad, Jet's strategic partner with a 24% stake, is unwilling to raise its shareholding. The hunt for new investors is on since that is a precondition for the National Infrastructure Investment Fund (NIIF) to step in. Last week, the Hinduja Group had said in a statement that it is evaluating the opportunity to invest in Jet Airways. This had given way to rumours in the market that the Jet revival efforts were still on though many raised doubts about its viability.

As reported by DNA Money, a Dutch court's verdict last week that the ailing airline is bankrupt was the proverbial last nail. On the day Jet's lenders were to meet Hindujas and Etihad officials in Dubai, the carrier was declared bankrupt in Amsterdam over the Rs 150 crore liability to overseas lessors. The lenders will have to immediately assuage the fears of potential investors to give the sale a final shot.