Jet Airways shares crash 52 pc after lenders decide to initiate bankruptcy proceedings

Agencies
June 18, 2019

New Delhi, Jun 18: Jet Airways shares lost over half of its value on Tuesday following its lenders' decision to initiate bankruptcy proceedings against the grounded airline.

Jet Airways stocks hit an intra-day low of Rs 32.25 per share, falling by a massive 52 per cent. At 1.41 p.m, Jet's stocks were trading at Rs 38.05 per share, down Rs 30.25 or 44.29 per cent.

SBI-led lenders consortium on Monday said that they have decided to seek resolution under Insolvency Bankruptcy Code.

"A meeting of lenders was held today to consider the way forward in respect of Jet Airways. After due deliberations, lenders have decided to seek resolution under IBC since only a conditional bid was received and requirement of the Investor for SEBI exemptions and resolution of all creditors is possible under IBC. Lenders led by State Bank of India have been taking efforts to find a resolution for Jet Airways outside IBC but in view of the above, Lenders have decided to seek a resolution within the IBC process,” they said in a statement.

Besides owing Rs 8,500 crore to public sector banks, the airline has a total liability of about Rs 25,000 crore which includes dues of operational creditors.

Earlier this month, two of the airline’s suppliers — Shaman Wheels and Gaggar Enterprises — moved the National Company Law Tribunal (NCLT) and sought that insolvency proceedings be initiated against the company. NCLT was to hear the matter on June 13. However, no one from Jet Airways showed up after which the matter was adjourned to June 20.

Jet Airways owes Shaman Wheels Rs 6.17 crore, while it owes Gaggar Enterprises Rs 53 lakh. A court-approved notice will be sent to Jet for this hearing and if it fails to show up again, the court may proceed with the matter.

Additionally, multiple reports indicate that the National Aviator's Guild, the body of Jet pilots, is also planning to move the NCLT to initiate insolvency proceedings to recover unpaid salaries.

Running out of cash, Jet Airways suspended its entire operations on April 17. Subsequently, the government re-allocated its slots and foreign traffic rights to rival carriers.

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News Network
January 8,2020

Dubai, Jan 8: A Ukrainian airliner crashed soon after taking off from Tehran's Imam Khomeini airport on Wednesday, killing all 176 people aboard, Iran's state television and Ukraine's leaders said.

The Boeing 737 belonging to Ukraine International Airlines crashed near the airport and burst into flames. Ukraine's embassy in Iran, citing preliminary information, said the plane had suffered engine failure and the crash was not caused by "terrorism".

Ukraine President Volodymyr Zelenskiy said there were no survivors.

"My sincere condolences to the relatives and friends of all passengers and crew," Zelenskiy said in a statement, adding that Ukraine was seeking to establish the circumstances of the crash and the death toll.

Iranian TV said the crash was due to technical problems but did not elaborate. State broadcaster IRIB said on its website that one of the plane's two black boxes - the flight data recorder and the cockpit voice recorder - had been found.

Iranian media quoted an Iranian aviation official as saying the pilot of the airliner did not declare an emergency.

There was no official word from Ukraine International Airlines. It was the Kiev-based airline's first fatal crash.

"The fire is so heavy that we cannot (do) any rescue... we have 22 ambulances, four bus ambulances and a helicopter at the site," Pirhossein Koulivand, head of Iran's emergency services, told Iranian state television.

Ukraine's prime minister and Iranian state TV said 167 passengers and 9 crew were on board. Iranian TV said 32 of those on board were foreigners.

Television footage showed debris and smouldering engine parts strewn across a field, and rescue workers with face masks retrieving bodies of the victims.

According to air tracking service FlightRadar24, the plane that crashed was Flight PS 752 and was flying to Kiev. The plane was three years old and was a Boeing 737-800NG, it said.

The model's twin engines are made by CFM International, a U.S.-French venture co-owned by General Electric and France's Safran.

Modern aircraft are designed and certified to cope with an engine failure shortly after take-off and to fly for extended periods on one engine. However, an uncontained engine failure releasing shrapnel can cause damage to other aircraft systems.

A spokesman for Boeing said the company was aware of media reports of a plane crash in Iran and was gathering more information. The plane manufacturer grounded its 737 MAX fleet in March after two crashes that killed 346 people.

The 737-800 is one of the world's most-flown models with a good safety record and which does not have the software feature implicated in crashes of the 737 MAX.

Under international rules overseen by the United Nations, Iran is responsible for leading the crash investigation.

Ukraine would be involved and the United States would usually be accredited as the country where the Boeing jet was designed and built. France, where the engine maker CFM has half its activities, may also be involved.

There was no immediate word on whether the U.S. National Transportation Safety Board would be involved in the probe amid escalating tensions between the U.S. and Iran. The NTSB usually invites Boeing to give technical advice in such investigations.

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News Network
February 22,2020

Washington, Feb 22: US President Donald Trump will raise the issue of religious freedom with Prime Minister Narendra Modi during his visit to India next week, the White House said on Friday, noting that the US has great respect for India's democratic traditions and institutions.

"President Trump will talk about our shared tradition of democracy and religious freedom both in his public remarks and then certainly in private. He will raise these issues, particularly the religious freedom issue, which is extremely important to this administration," a senior official told reporters in a conference call.

The official was responding to a question on whether the president was planning to speak to Modi on the Citizenship (Amendment) Act or the National Register of Citizens.

"We do have this shared commitment to upholding our universal values, the rule of law. We have great respect for India's democratic traditions and institutions, and we will continue to encourage India to uphold those traditions," the official said, requesting anonymity.

"And we are concerned with some of the issues that you have raised," the senior administration official said, in response to the question on CAA and NRC.

"I think the President will talk about these issues in his meetings with Prime Minister Modi and note that the world is looking to India to continue to uphold its democratic traditions, respect for religious minorities," the official said.

"Of course, it's in the Indian constitution -- religious freedom, respect for religious minorities, and equal treatment of all religions. So this is something that is important to the president and I'm sure it will come up," said the official.

Pointing out that India has a strong democratic foundation, the official said India is a country rich in religious, linguistic, and cultural diversity.

"In fact, it's the birthplace of four major world religions," the official noted.

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News Network
June 13,2020

New Delhi, June 13: A quarantine notice pasted outside former Prime Minister Manmohan Singh’s 3, Motilal Nehru Place residence has raised speculations among media and political circles.

According to reports, the daughter of a domestic help who works at Singh’s residence has tested positive. She and her family, who live in the servant quarters, have been quarantined.

Singh, who has not been keeping well for some time, is slowly getting active. Congress leaders said the former Prime Minister attended a meeting of the party’s consultative committee on Thursday through video conference.

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