Jet Airways tanks 5% ahead of creditors meet today

Discussion on shortlisted bidders can be expected in the meeting.

Jul 30, 2020 09:07 IST India Infoline News Service

The private carrier Jet Airways on Thursday opened at a lower circuit limit of Rs27.65 per piece, trading down by 4.98% on Sensex. The stock will be in focus as the airline's committee of creditors (CoC) meet is scheduled for today.

Jet Airways said, "We wish to inform that the Thirteenth Meeting of Committee of Creditors (CoC) of Jet Airways (India) Limited is scheduled to be held on July 30, 2020, at 12: 00 P.M. IST".

Discussion on shortlisted bidders can be expected in the meeting.

Earlier on July 23, Jet Airways told exchanges that according to 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.

The bids were submitted in the fourth round of Expression of Interest invited by a committee of creditors (CoC) in Jet Airways. However, the airline did not reveal the names of the bidders.

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). The company's debt stands over Rs8,000cr, which the airline could not fulfil due to lower business, fuel and lease costs and liquidity crunch. Notably, there are further claims of over Rs30,000cr on the airline.

On Tuesday, the airline announced its financial performance for fiscal FY19. Jet Airways recorded a net loss of Rs5,539cr in FY19 which widened against loss of Rs636cr a year ago same period. Meanwhile, revenue was at Rs23,314cr in the fiscal compared to Rs25,177cr of FY18.

In FY19, Jet Airways' total expenses jumped 13.8% on a year-on-year (YoY) basis to Rs28,141.61cr due to higher aircraft fuel expenses (up 24.8% yoy), higher aircraft and engines lease rentals (up 18.4% yoy), higher finance costs (up 16.5% yoy) and higher other expenses (up 20.2% yoy).

Related Story