Bankers, you can have your Jet and eat it too

Using interim financing under IBC is likely to resolve Jet's woes faster and better

The decline of Jet Airways’ business and the resulting distress to its creditors have elicited a sharply polarised response from observers. Some have supported the lead banker’s (in this case the State Bank of India) assertion that providing Jet with interim support increases the probability of a recovery while others have enthusiastically invoked Schumpeter’s creative destruction to espouse a dissolution of the troubled airline. Both the views are partially correct and are unable to completely grasp the economics of creative destruction and the strategic purpose of bankruptcy. 

Creative destruction does not mean the destruction of businesses with the attendant mass layoffs