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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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Agencies
August 3,2020

New York, Aug 3: The number of coronavirus cases confirmed all over the world has surpassed 18 million, while the global COVID-19 death toll stands at over 687,000 according to data from the Johns Hopkins University's Coronavirus Resource Center.

As of 06:00 Moscow time on Monday (03:00 GMT), there are 18,017,556 confirmed coronavirus cases in the world. The global death toll from COVID-19 stands at 687,930. The number of recovered individuals stands at 10,649,108.

The United States remains the country with the largest number of cases (4,665,932) and the highest COVID-19 death toll (154,841), according to the latest data from the Johns Hopkins University.

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News Network
March 4,2020

Mar 4: Prime Minister Narendra Modi said on Wednesday that he has decided not to participate in any 'Holi Milan' programme as experts have advised reducing mass gatherings to avoid the spread of coronavirus.

"Experts across the world have advised reducing mass gatherings to avoid the spread of COVID19 Novel Coronavirus. Hence this year, I have decided not to participate in any 'Holi Milan' programme," the PM tweeted.

This year, Holi is on March 10.

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Agencies
July 14,2020

Jaipur, Jul 14: Sachin Pilot has been removed as Deputy Chief Minister and Rajasthan PCC Chief, announced Congress leader Randeep Singh Surjewala on Tuesday.

"Sachin Pilot, Vishvendra Singh and Ramesh Meena have been removed from the posts of Deputy Chief Minister and Ministerial posts respectively. Sachin Pilot has also been removed as the Rajasthan PCC Chief," said Surjewala.

Govind Singh Dotasra has been appointed as the new PCC chief, he added.

"Sachin Pilot, few Congress Ministers and MLAs got involved in the conspiracy to topple the Congress government by getting entangled within the trap of BJP," he added.

The decision was taken after a Congress Legislature Party (CLP) meeting at the Fairmont Hotel in Jaipur, Rajasthan earlier today.

The Rajasthan Congress is in turmoil over the past few days. While Chief Minister Ashok Gehlot has blamed the BJP for attempting to destabilise the State government by poaching MLAs, Deputy Chief Minister Sachin Pilot has been camping in Delhi.

A controversy broke out in Rajasthan after Special Operation Group (SOG) sent a notice to Pilot to record his statement in the case registered by SOG in the alleged poaching of Congress MLAs in the State.

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