Jet Airways adds over 15% in three days

Jet Airways (India) hit an upper circuit of 5% at Rs 104.40, extending gains for the third session.

The stock has added 15.68% in three sessions, from its recent closing low of Rs 90.25 recorded on 18 June 2021.

On Tuesday (22 June 2021), the National Company Law Tribunal (NCLT) approved Jalan Kalrock Consortium's resolution plan for the company.

"by the order pronounced orally on June 22, 2021, the Mumbai bench of the National Company Law Tribunal approved the Resolution Plan submitted by the Resolution Applicant for the corporate insolvency resolution of the Company under Section 31 of the Code," the aviation company said in a statement made on Tuesday.

 

As part of the revival plan NCLT has reportedly given 90 days to Director General of Civil Aviation (DGCA) and Aviation Ministry to allot slots to the debt-laden Jet Airways, the media reported.

However, Jet Airways being given its important historic domestic and international routes remains unresolved, reports added.

As per reports, the Kalrock-Jalan consortium had proposed to repay banks, financial institutions and employees Rs 1,200 crore over next five years and plans to establish Jet Airways as a full service airline with 30 aircrafts.

Jet Airways is debt-ridden non-operational airline company. The airline had grounded its operations in April 2019, after it ran out of money to meet its debt repayment obligations. It was admitted for insolvency on 20 June 2019, after lenders failed to sell the grounded airline.

In October 2020, the Committee of Creditors (CoC) of Jet Airways had approved the resolution plan submitted by a consortium of UK's Kalrock Capital and UAE-based entrepreneur Murari Lal Jalan.

The air carrier reported a standalone net loss of Rs 5,535.75 crore in the year ended March 2019 (FY19), higher than net loss of Rs 767.62 crore in the year ended March 2018 (FY18). Total income declined 2.7% to Rs 23,314.11 crore in FY19 from Rs 23,958.37 crore in FY18.

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