The ailing airline which grounded its last plane in April end now by all efforts by the debt laden airline and its lenders has been accepted to be dead by the company's group of lenders led by the SBI. As there is no more an acquirer in the sight for the beleaguered entity.

NCLT Mumbai bench has taken the company under its arm on Thursday and the aviation market has geared up envisaging insolvency to be the most practical solution for the company. As per local media reports, from the operational and creditors' claims only a little amount will be recovered, adding up to over $2 billion.

Banks if they had at an earlier date refused to finance the company further without fresh equity could have prevented the crisis and default that finally happened in January.

Also, it has been supposed that the airline could still have managed to continue its operations with banks offering working capital through an in-court bankruptcy process.

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