Shares of Jet Airways
hit the lower circuit and fell in today’s trade after the National Company Law Tribunal (NCLT) has admitted State Bank of India’s (SBI) insolvency plea against the company under section 7 of the Insolvency and Bankruptcy Code (IBC), media reports stated.
However, the stock has recouped early losses and trading higher on the BSE.
The tribunal has also instructed that the resolution process be wrapped up in 90 days as the matter is of national importance, media reports stated.
Further, NCLT also terminated an earlier order passed by a Dutch court agreeing to initiate bankruptcy proceedings against the grounded airline based on pleas by some local vendors. It stated that tribunal cannot take note of the Dutch court order, as no non-Indian court is authorised to pass an insolvency order on a company registered in India, reports added.
SBI Chairman Rajnish Kumar said on Thursday that the decision to refer the resolution of Jet Airways under IBC was taken after due diligence by all lenders. “There are cogent reasons for lenders. Every decision is taken after a lot of due diligence,” Kumar said during SBI’s annual general meeting (AGM).
Jet Airways (India) Ltd is currently trading at Rs69.25 up by Rs5.25 or 8.2% from its previous closing of Rs64 on the BSE. The scrip opened at Rs57.60 and has touched a high and low of Rs76.80 and Rs39.10 respectively.