State Bank of India Monday said no decision has been taken on moving the National Company Law Tribunal (NCLT) against Jet Airways. On Sunday, officials associated with the lenders and key shareholders said SBI was considering moving the tribunal seeking insolvency proceedings against Jet Airways since it is running out of money for operations. “Reports have been appearing in the media about decision taken by SBI to refer Jet Airways to NCLT. These are totally speculative and SBI would like to state that no such decision has been taken,” a SBI spokesperson said in a statement on Monday.
Queries sent to SBI and Jet Airways on Sunday regarding SBI considering moving the tribunal had remained unanswered. On Monday, stock exchanges also sought clarification from Jet Airways on the reports. The airline is yet to give its response to the bourses. A consortium of banks, led by SBI, has extended loans to Jet Airways, which is looking to rejig debt and raise funds. Lenders can initiate proceedings under the Insolvency and Bankruptcy Code (IBC) to recover dues from debt-laden entities.
The process can commence only after approval from NCLT. Shareholders of Jet Airways had approved conversion of loan into shares and other proposals during the extraordinary general meeting (EGM) on Thursday. Shares of Jet Airways declined over three per cent to close at Rs 229.15 on BSE.
Source: Financial Express, February 26, 2019