Jet Airways shares lost over half of its value on Tuesday following its lenders’ decision to initiate bankruptcy proceedings against the grounded airline.
Jet Airways stocks hit an intra-day low of ₹32.25 per share, falling by a massive 52 per cent. At 1.41 p.m, Jet’s stocks were trading at ₹38.05 per share, down ₹30.25 or 44.29 per cent.
SBI-led lenders consortium on Monday said that they have decided to “seek resolution under IBC since only a conditional bid was received and requirement of the investor for SEBI exemptions and resolution of all creditors is possible under IBC”.
Besides owing ₹8,500 crore to public sector banks, the airline has a total liability of about ₹25,000 crore which includes dues of operational creditors.
Running out of cash, Jet Airways suspended its entire operations on April 17. Subsequently, the government re-allocated its slots and foreign traffic rights to rival carriers.
(This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.)