SBI moves NCLT against Jet Airways; shares plunge 41%

The Indian Express, June 19, 2019

State Bank of India (SBI) on Tuesday moved the Mumbai bench of National Company Law Tribunal (NCLT) for resolution of Jet Airways under the Insolvency and Bankruptcy Code (IBC). Jet Airways shares plunged nearly 41 per cent on the stock exchanges following the decision of lenders to take the airline to NCLT.
NCLT is likely to take up the petition on Wednesday. Other banks in the consortium which lent funds to the crippled airline are also expected to join the petition. “We are hopeful of a resolution under the IBC rather than liquidation. Bidders are likely to be attracted by exemptions under IBC. Exemption from Sebi open offer may be possible through IBC,” said a banking source.
Jet Airways owes over Rs 8,500 crore to lenders.
Etihad Airways, which holds around 24 per cent stake in Jet Airways, was the only shortlisted bidder to put in a bid. The Hinduja group later made its interest in Jet Airways public, and the two groups were in talks for a possible deal. Lenders said that they had received just one conditional bid, and that the investor had asked for SEBI exemption.
Meanwhile, Jet Airways scrip plummeted 40.78 per cent to close at Rs 40.45 on the BSE. During the day, it tanked 52.78 per cent to hit an all-time low of Rs 32.25. Over 60.5 lakh shares of the company were traded on the BSE and over four crore shares on the NSE during the day. This the 12th consecutive trading day’s fall for Jet Airways and the scrip has plunged over 73 per cent during this time, wiping out Rs 1,253.5 crore from its market valuation on the BSE. The scrip has also been on a backfoot following announcement that stock exchanges will impose restrictions on trading in Jet Airways’ shares from June 28 as part of preventive surveillance measures to curb excessive volatility, according to a circular issued last week.

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