Jet Airways stock tumbled nearly 15 per cent Tuesday after State Bank of India-led consortium of lenders decided to send the grounded airline to the National Company Law Tribunal. The scrip fell for the 12th consecutive day and plunged 14.93 per cent to a multi-year low of Rs 58.10 on the BSE.
At NSE, shares plummeted 14.98 per cent to a multi-year low of Rs 58.15. In 12 trading days, the scrip has plunged over 61 per cent. Harried bankers Monday decided against an outright sale of Jet Airways to the lone bidder, and instead voted to send it for bankruptcy to recover their Rs 8,000 crore dues.
The once largest private sector airline, started over 25 years ago, stopped flying in April after it ran out of cash and the unpaid lessors took away most of its 100-odd operational aircraft. After a meeting of the 26 lenders on Monday, SBI in a statement said, “after due deliberations, the lenders have decided to seek resolution for Jet Airways under the bankruptcy code since only a conditional bid was received”.
The decision of the lenders to seek bankruptcy process through the NCLT came exactly two months after the airline stopped flying on April 17, after being on the fringe since last July. 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.
Source: Financial Express, June 18, 2019