Jet Airways falls 29% ahead of NCLT hearing on insolvency plea

Shares of Jet Airways (India) hit a fresh all-time low of Rs 28.60, down 29 per cent, in early morning trade on the National Stock Exchange (NSE) on Wednesday ahead of National Company Law Tribunal (NCLT) hearing later in the day on insolvency plea filed by the lenders.

The State Bank of India, the lead banker to Jet Airways, on Tuesday filed an insolvency plea against the crisis-hit airline under Section 7 of the Insolvency and Bankruptcy Code at the NCLT, Mumbai.

Ashish Chhawchharia of advisory firm Grant Thornton has been selected interim resolution professional by the SBI and one of the first tasks before him would be to gather details of the airline’s assets, aircraft, and employees on the rolls, the Business Standard reported.

The interim resolution professional would need to find out ownership and lease details of the planes and this would have to take place along with inviting claims from creditors, reported suggested quoting sources. CLICK HERE TO READ FULL REPORT

In the past week, the stock has tanked 74 per cent from the level of Rs 110 after the BSE and NSE ordered to pull the scrip out from Futures and Options (F&O) trading from June 28. The exchanges have also decided to move the counter to ‘trade-to-trade’ segment, effective June 28 till further notice. Under this category, delivery of shares is compulsory.

The exchanges said the company's failure to provide any prompt or satisfactory response to the clarifications sought from them with respect to various rumours floating in the market and no declaration of the audited financial result for the year ended 31 March 2019 prompted them to take the decision.

At 09:30 am, the stock was trading 20 per cent lower at Rs 32 on the NSE, as compared to a 0.93 per cent rise in the Nifty 50 index. A combined 6.96 million shares changed hands on the counter on the NSE and BSE so far.

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