SBI lands Jet Airways at NCLT
Lenders' consortium led by the State Bank of India (SBI) has filed an insolvency plea against the now non-functional airline Jet Airways with the National Company Law Tribunal (NCLT). Reacting to this development, the stock of Jet Airways tumbled close to 50 per cent. The lower circuit limit for the day is at Rs. 30.75, down by 55 per cent. NCLT will be hearing the lenders' plea on June 19, while operational creditors plea will be heard on June 20.
Jet Airways stalled all its operations two months ago, on April 17, 2019. The company owes more than Rs. 8,000 crore to 26 banks. The lenders' consortium led by SBI decided on Monday to seek resolution for the company under the insolvency bankruptcy code (IBC). The bank had little choice as it received only one bid for the airline's assets. The Etihad-Hinduja consortium expressed interest in the airline but failed to provide any defined proposal for the airline's revival.
On Tuesday, the stock of Jet Airways was trailing at Rs. 37.60 per share, 30.80 or 45.03 per cent at 14:52 hours on NSE.