The lenders would not drag debt-ridden Jet Airways to National Company Law Tribunal (NCLT) and resolve the issue by seeking investment bids.
The lenders would not drag debt-ridden Jet Airways to National Company Law Tribunal (NCLT) and resolve the issue by seeking investment bids, news agencies reported citing an unidentified aviation official. It’s not the right time for the lenders to the ailing airline to approach insolvency tribunal to find a solution, the report added.
Creditors can take the defaulting company to the NCLT for seeking approval for resolution under the Insolvency and Bankruptcy Code (IBC).
Even as the lenders did not take a final decision today on providing emergency funds, the funding is expected to come through, the official also added. Vinay Dube, CEO, Jet Airways, has asked the banks for an immediate infusion of Rs 400 crore into the company, CNBCTV18 reported citing Civil Aviation Secretary. The board of the company has decided to ground the airline if the largest public sector lender gives no reply to the request, it added.
As of today, Jet Airways has 5 planes in operation mode, Civil Aviation Secretary said. Ninety per cent of jet Airways’ slots are vacant and are being reallocated temporarily, he added.
The management of cash-strapped Jet Airways would take a final call by the end of the day today on whether to continue operations as the airline makes last ditch efforts to raise funds, news agency PTI reported citing sources. Sources at the airline said all options would be explored before deciding on its operations.
On Monday, Jet Airways CEO Vinay Dube had said the lenders could not decide on the emergency funding and that the airline’s board would meet on Tuesday to take a call on the future.
Jet Airways shares
Jet Airways stock fell 7.62 per cent to close at Rs 241.85 on the BSE. The scrip fell 18.56 per cent to Rs 213.20 during the day. At the NSE, the shares declined 7.71 per cent to close at Rs 241.50.
On the traded volume front, 48.67 lakh shares of the company were traded on the BSE and more than five crore shares on the NSE during the day. The firm’s market valuation also fell by Rs 225.65 crore to Rs 2,747.35 crore on the BSE.