Jet Airways spikes 93% ahead of NCLT order on insolvency plea

Jet Airways shares shot up 150 percent intraday on June 20 amid short covering ahead of order from National Company Law Tribunal on insolvency plea filed by State Bank of India.

The stock hit an intraday high of Rs 82.75 after hitting a record low of Rs 27 (down 33.1 percent intraday) in the morning.

It ended the day at Rs 64.00, up Rs 30.90 or 93.35 percent on the BSE.

The National Company Law Tribunal reserved order on insolvency plea filed by country’s largest lender SBI against Jet Airways and the order will be passed at 1700 hours IST today, reports CNBC-TV18.

On June 18, SBI filed insolvency petition in Mumbai bench of National Company Law Tribunal in Mumbai against cash-strapped Jet Airways on behalf of the consortium of lenders and proposed Ashish Chhawchharia of Grant Thornton as Resolution Professional.

The decision of the lenders to seek bankruptcy process through the NCLT comes exactly two months after the airline stopped flying on April 17, after being on the fringe since last July.

Jet Airways owes over Rs 8,000 crore to a consortium of 26 banks led by the State Bank, which now run the airline, while it has a much larger debt pile by way of accumulated losses to the tune of Rs 13,000 crore and vendor dues of over Rs 10,000 crore and salary dues of over Rs 3,000 crore.

The once largest private sector airline started over 25 years ago by airline-ticketing-agent-turned-entrepreneur Naresh Goyal stopped flying on April 17 after it ran out of cash and the unpaid lessors took away most of its 100-odd operational airplane.

Moreover, sources told business channel that aviation ministry allocated international traffic rights of Jet Airways to other Indian airlines for a period of three months. The ministry will review the situation after three months.

Note: The copy has been updated with closing numbers. Subscribe to Moneycontrol Pro and gain access to curated markets data, exclusive trading recommendations, independent equity analysis, actionable investment ideas, nuanced takes on macro, corporate and policy actions, practical insights from market gurus and much more.

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