Shares of Jet Airways (India) slipped 4 per cent to Rs 242 in early morning trade on the BSE on Thursday, falling 9 per cent in past two trading days as the financial crises deepen in the cash-starved airline.
Jet Airways has grounded 15 additional aircraft due to non-payment of amounts outstanding to lessors under their respective lease agreements, the airline said in a regulatory filing on Monday. Now, the total number of planes grounded on account of default in lease rental payments, as disclosed by the airline, stands at 69.
According to a PTI report, the company on Wednesday deferred the March salary payment to its employees, citing "complexities" involved in the finalisation of the debt-recast plan, under which the State Bank of India (SBI)-led consortium of lenders has taken over the management control of the airline.
On March 25, Jet Airways board had approved a resolution plan formulated by SBI-led domestic lenders, under which they had agreed to infuse an emergency funding of Rs 1,500 crore into the airline, and convert the same into equity worth 50.1 percent for a notional value of just Re 1 each share. However, the funds are yet to be disbursed due to "technical" reasons, the report said. CLICK HERE TO READ FULL REPORT
“Once approved by all stakeholders, the final structure will offer more color on the eventual shareholding while airline operations will continue to be overseen by the existing professional management. While efforts are being made to rationalize costs and rejig the existing network to reduce losses, adequate capital support to execute the plan will be key for the airline’s revival,” analysts at SBI Securities said in December quarter review dated February 15, 2019. The brokerage firm has ‘hold’ rating on the stock with a target price of Rs 180 per share.