Jet Airways crisis: SBI says no decision taken on moving NCLT against airlines

By: |
Updated: February 25, 2019 8:56:05 PM

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.

Jet Airways crisis, sbi, nclt, Jet Airways, Insolvency and Bankruptcy Code, jet airways newsOn Monday, stock exchanges also sought clarification from Jet Airways on the reports.

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.

Also read: Amazon back in business: Entire product range available again after new FDI e-commerce rules

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.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Next Stories
1MWC 2019: Nokia 4.2, Nokia 3.2, Nokia 1 Plus, and Nokia 210 affordable phones launched by HMD Global
2This startup uses artificial intelligence to detect breast cancer early; raises $6 million
3Real estate defaults could trigger next crisis for struggling Indian NBFCs