With the 180-day deadline to submit a resolution plan for the now-grounded Jet Airways under the Insolvency and Bankruptcy Code coming to an end on December 16, lenders have been left with little choice but to allow more time to the sole bidder to submit a binding bid.

People familiar with the development told CNBC-TV18 that the committee of creditors will put to vote a proposal to allow a four-week extension to Synergy Group to submit a binding bid, failing which liquidation proceedings may be initiated against Jet Airways.

Synergy Group had sought time till February 2020 to submit its bid for the bankrupt airline as it has sought clarity on availability of slots at Amsterdam, London and airports in India, a person aware of the talks added.

The creditors committee, however, was against granting time until February and has instead decided to consider an extension until December 16, and in parallel seek an additional 90 days’ time from the Mumbai bench of the National Company Law Tribunal to resolve the matter, said one of the bankers present at the meeting.

However, a few senior executives from banks that have exposure to Jet Airways told CNBC-TV18 on condition of anonymity that liquidation is a very real possibility for the airline.

Jet Airways is facing claims of over Rs 8,500 crore from banks, besides other dues it has to repay to its lessors, employees, vendors and others.

First Published:Nov 19, 2019 7:37 PM IST