Mumbai: Cash-strapped Jet Airways is slapped with bankruptcy threat under the law, stated a report. Last week, a service provider had issued a notice warning the airline under the Insolvency and Bankruptcy Code of 2016. The service provider reportedly warned that a ‘corporate insolvency resolution process’ would be undertaken if Jet Airways does not pay the dues within 10 days. Also Read - Why London High Court Thinks Vijay Mallya Should be Given More Time

Meanwhile, Jet Airways ceased operations last Wednesday due to paucity of cash. It has a debt of Rs 8,500 crore, mostly from the government-run banks. The abrupt closure of Jet Airways operations, for the time being, has put jobs of over 20,000 employees at stake. The airline, which ceased all its operations temporarily last week, is under the management control of State Bank of India-led consortium of lenders following a debt-recast plan approved by its board last month. Also Read - ED Raids Jet Airways Founder Naresh Goyal For Alleged Money Laundering, Books Him Under PMLA

Meanwhile, Jet Airways on Monday announced that Nasim Zaidi, the non-executive and non-independent director of the airline, has quit the board citing personal reasons and time constraints. In an exchange filing, Jet Airways said, “This is to inform you that Nasim Zaidi has submitted his resignation as a non-executive, non-independent director of the company with effect from April 21 due to personal reasons and constraints of time.” Zaidi, the former Chief Election Commissioner and ex-civil aviation secretary, joined the Jet Airways board in August 2018. Also Read - Anil Ambani, 4 Others Resign as Directors of Reliance Communications Over Bankruptcy

(With agency inputs)