Shares of the debt-laden Jet Airways extended decline to 13th session in a row and fell as much as 28.18 per cent after yesterday’s 41 per cent decline to hit fresh all-time low of Rs.29.05 on the BSE. On the National Stock Exchange, the stock slumped 29.38 per cent to record low of Rs. 28.60. Shares of the airline have been facing intense selling pressure ever since the National Stock Exchange earlier this week said that it would bar its shares from trading in the derivative segment from the start of July futures and options series.
Investors’ wealth in Jet Airways has been eroded massively as its market value has fallen from Rs. 1,861.86 crore, when it had shut its operations on April 17, to Rs. 330 crore at today’s lowest level.
Meanwhile, the consortium of 26 banks to which Jet Airways owes over Rs. 8,500 crore has decided to take the grounded airline to the National Company Law Tribunal to recover their dues. Jet Airways stopped flying on April 17 after it ran out of cash and the unpaid lessors took away most of its 100-odd operational airplanes.
Decision of banks to drag the Mumbai-based airline comes after two of its operational creditors Shaman Wheels and Gaggar Enterprises filed insolvency plea earlier this month.
Apart from banks, Jet Airways owes Rs. 10,000 crore to its hundreds of vendors, primarily aircraft lessors and over Rs. 3,000 crore to around 23,000 employees who have not been paid since March.
Reacting to yesterday’s decision of banks to drag it to the bankruptcy court, Jet Airways founder Naresh Goyal said: “I feel sad and deeply distressed mainly for our loyal employees who have waited months and were anxiously and hopefully awaiting a positive outcome to the Bank Led Resolution Plan.”
“I can only hope and pray that even now a solution can emerge and Jet can fly and fulfill the needs not only of employees but of air travellers who feel the absence of the Joy of flying,” he said.
As of 11:56 am, Jet Airways shares traded 23.11 per cent lower at Rs. 31.10 underperforming the Sensex which was up 0.33 per cent.