MUMBAI, Sept 4 (Reuters) - Creditors of India’s bankrupt Jet Airways are likely to recover less than 10% of the carrier’s total outstanding dues in a liquidation scenario if no suitor succeeds in buying the airline, two sources told Reuters.
The airline’s financial and operational creditors, who are owed nearly 300 billion Indian rupees ($4.20 billion) are likely to recover only $300-$400 million from the sale of Jet’s assets, the sources, who have direct knowledge of the matter, said.
“The expected recovery on owned planes and real estate is $300-400 million after repaying debt tied specifically to those assets,” said one of the sources.
The sources, who asked not to be named as they have not been cleared to discuss the matter with media, said Jet currently has some four to six Boeing and Airbus aircraft, and some real estate assets in India, on which there are some outstanding dues.
The airline, less than a year ago, was operating a fleet of more than 120 planes that flew to dozens of domestic destinations and international hubs such as Singapore, London and Dubai.
Once India’s biggest private carrier, Jet stopped flying in April after running out of cash, leaving thousands without jobs and pushing up air fares across the country. It was admitted to bankruptcy court in June after its lenders, led by State Bank of India, failed to agree on a revival plan.
The court-appointed resolution professional, now responsible for the company, declined to comment and said that the focus remains on resolution and not liquidation at this stage. ($1 = 71.4920 Indian rupees) (Reporting by Nupur Anand Editing by Aditi Shah and Louise Heavens)