The NCLT has approved the revival plan to revive Jet Airways, which is facing financial crisis. This also affected the company’s shares. On Tuesday, there was a rise in the stock of Jet Airways.
Jet Airways shares rise
The National Company Law Tribunal (NCLT) has approved the revival plan to bail out the country’s oldest airline company Jet Airways from the crisis. Due to this decision, there was a strong jump in the shares of Jet Airways. The shares of the company saw a rise of about 5% on Tuesday. The stock climbed 4.96% to Rs 99.45. Not only this, its stock also got upper circuit on BSE.
At 11.30 am, shares of Jet Airways were trading at Rs 99.45, up 4.96 per cent on the BSE. After the decision of NCLT came, this momentum increased further. The Mumbai bench of the National Company Law Tribunal (NCLT) on Tuesday gave further approval to the resolution plan submitted by the Colorrock Capital and Murari Lal Jalan consortium. In such a situation, soon the airline will be able to fly again with the passengers. Jet Airways suspended operations on April 17, 2019, due to the financial crisis and has been going through a resolution process under the Insolvency and Bankruptcy Code (IBC) for two years.
In October 2020, the grounded airline’s Committee of Creditors (CoC) approved the resolution plan submitted by a consortium of UK-based ColRock Capital and UAE-based entrepreneur Murari Lal Jalan. The airline was declared bankrupt in 2019 after failing to repay the loan. A revival plan was drawn up last year by then-Dubai-based businessman Murari Lal Jalan and London-based financial advisor and alternative asset manager, Colorrock Capital Management Ltd.
In June 2019, the NCLT accepted the insolvency petition against Jet Airways filed by a consortium of lenders led by State Bank of India. The airline has to settle claims of over Rs 15,525 crore from various creditors under IBC, while 13 domestic banks and financial institutions led by SBI have claimed Rs 5,776 crore. Jet Airways has around 21,000 creditors. But the company has lost most of its landing slots due to flight disruptions for a long time.
Also read: Big news: Now Jet Airways will fly again, revival plan approved, now slot will be decided
.