Jet Airways insolvency: Lenders to meet on Feb 18

Jet Airways owes banks nearly Rs 8,000 crore.

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26 Aug, 2025 12:21

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Jet Airways' Committee of Creditors will meet on February 18 to decide on giving more time to Prudent ARC, and possibly Synergy Group, to put in bids for the airline.

The meeting takes place a day after another no-show even as the deadline to submit bids expired. As it was feared neither of the two suitors submitted a proposal to take over Jet Airways, which had suspended operations in April 2019.

The Committee of Creditors, consisting of the banks that lent to the airline, would either extend the deadline or clear the way for liquidation, the eventual possibility.

Of the two suitors, reports suggest, Prudent ARC has asked for more time to submit bids.

A Business Standard report said that the New Delhi-based company informed the resolution professional overseeing the insolvency process that it had got the backing of investors and needs more time to submit a formal bid.

On the other hand, there is now a big question over Synergy's interest. While it wanted assurance from the government that airport slots of Jet Airways would be available to the new owner, the administration said that the availability would depend on a concrete business plan.

Synergy's owner Germán Efromovich earlier commented that Jet Airways had “a more serious problem” and that, in the history of aviation, “no airline that stopped flying rose again”.

For Jet Airways lenders, led by State Bank of India, there are few options. Liquidation will further lessen their chances of recovering at least a part of the over Rs 8,000 crore that Jet Airways owes them. But, they end up with just that alternative. The airline, overall, has a liability of over Rs 20,000 crore.

The banks now have just a month before the mandatory 270-day insolvency period, gets over.