Jet Airways soar 5% as creditors committee set to meet today

Jet Airways, which was grounded last year in April was sent for insolvency & bankruptcy code (IBC) after it defaulted against a consortium of lenders.

Aug 25, 2020 12:08 IST India Infoline News Service

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Private carrier Jet Airways continued to witness buying spree on exchanges, as the airline's committee of creditors (COC) are set to meet on Tuesday. Many are eyeing extension in the deadline for insolvency resolution process due to Covid-19 pandemic.

On Sensex, the airline's stock has touched the upper circuit limit of Rs30.35 per piece up 5%. However, the stock has corrected and was trading at Rs29.30 per piece up 1.21% at around 12.05 pm.

In its exchange filing, Jet Airways said, "We wish to inform that the Fourteenth Meeting of Committee of Creditors (CoC) of Jet Airways (India) Limited is scheduled to be held on August 25, 2020, at 11:30 AM IST, for which notice to the members of the CoC has been sent
on August 22, 2020."

Jet Airways had earlier extended the deadline for completion of insolvency process to August 21. However, the pandemic which resulted in nationwide lockdown has slowed down the process.

Although, the airline's creditors have not given any fresh deadline, however, media reports claimed that the extension in deadline is possibility ahead.

In the last creditors meet, Jet Airways announced the payment of $13M to the lessors for the acquisition of six aircraft involving Boeing along with engines. This came as good news for the airline whose aircraft has been grounded since last year April due to mounting debt.

Also, the airline had already intimated exchanges earlier in July that, according to the invitation of expression of interest and resolution plans, the Resolution Professional has received resolution plans for the airline from two Prospective Resolution Applicants, which shall be placed before the Committee of Creditors for its consideration.

Jet Airways, which was grounded last year in April was sent for insolvency & bankruptcy code (IBC) after it defaulted against a consortium of lenders led by the State Bank of India (SBI).

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