Shares of Jet Airways crashed up to 53 per cent in intra-day deals on Tuesday, after State Bank of India (SBI) - led lenders’ consortium moved National Company Law Tribunal (NCLT) to initiate insolvency proceedings against the airline.
At 1:32 pm, the share of debt-laden airline was trading at Rs 37.5 apiece, down 45.39 per cent, having recovered from lows of Rs 32.25. In comparison, the S&P BSE Sensex was trading 0.05 per cent higher. The stock has tanked 53 per cent thus far in June, as compared to 1 per cent decline in the S&P BSE Sensex.
The lenders, post a meeting held on Monday, decided to move the tribunal after none of the offers from the potential bidders could materialise. There were hopes that Mumbai-based Hinduja Group could team up with Abu Dhabi-based Etihad Airlines to collectively take up stake in the airline. READ ABOUT IT HERE
“Lenders have decided to seek resolution under IBC since only a conditional bid was received and requirement of the investor for Sebi (Securities and Exchange Board of India) exemptions and resolution of all creditors is possible under IBC,’’ SBI said in a statement.
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The statement added that two operational creditors — Shaman Wheels and Gaggar Enterprises — had earlier moved the NCLT. The tribunal has posted the matter for admission on June 20. The Jet lenders’ fresh application is expected to be heard the same day.
The airline, with a debt of more than Rs 8,000 crore, had temporarily suspended its operations from the midnight of April 17 after facing severe cash-crunch.
The scrip has tanked 44 per cent over the past 4-trading sessions after the BSE and NSE ordered to pull the scrip out from Futures and Options (F&O) trading from June 28. The exchanges have also decided to move the counter to ‘trade-to-trade’ segment, effective June 28 till further notice.