India's second largest airline, Jet Airways, has not flown since April 17 this year. Now, creditors have filed for insolvency with the airline, which means that the heavily indebted company is on the brink of financial ruin.

The commercial State Bank of India (SBI) and a number of other creditors have requested debt resolution from Jet Airways in accordance with Indian bankruptcy laws, SBI wrote in a statement.

”"It is the only way to reach a solution that takes everyone's interests into account," the bank writes.

Jet Airways' debts include unpaid payments to, among other things, leasing companies for the company's Boeing fleet, energy suppliers that stopped supplying the company with fuel at the beginning of April, and several airports that have not been paid for gate rentals.

Founder Naresh Goyal was prevented from leaving the country in late May and is being investigated for tax evasion, according to Indian media. Authorities are also examining Jet Airways' accounting for irregularities.

Source: News Agency Direkt