The cash-strapped company became the first domestic airliner to go into bankruptcy after the Mumbai bench of the National Company Law Tribunal (NCLT) admitted an insolvency petition filed by SBI on behalf of 26 lenders on June 20.
Jet Airways Thursday became the first domestic airliner to go into bankruptcy as the NCLT admitted an insolvency petition filed by State Bank on behalf of 26 lenders, sending its share price soaring a whopping 150 percent after having plumbed life-lows for many days.
Shares of Jet Airways witnessed an unprecedented rally on the bourses Thursday, bouncing back sharply after days of massive fall to close the day over 122 per cent higher.
Despite a weak opening, where the scrip hit an all-time low of Rs 27, it later pared the losses and jumped 16.16 per cent to Rs 38.45 on the BSE.
The scrip tanked 18.17 per cent to close at Rs 33.10 on the BSE. During the day, it dropped 28.18 per cent to hit an all-time low of Rs 29.05.
The scrip continued to face heavy selling pressure and tanked 28.18 per cent to an all-time low of Rs 29.05 on the BSE.
Jet Airways stocks hit an intra-day low of Rs 32.25 per share, falling by a massive 52 per cent. At 1.41 p.m, Jet's stocks were trading at Rs 38.05 per share, down Rs 30.25 or 44.29 per cent.
The lenders will now approach the National Company Law Tribunal (NCLT) under the Insolvency and Bankruptcy Code (IBC) to recover their dues of about Rs 8,500 crore.
The scrip which has been tumbling for the 11th consecutive day further plummeted 18.28 per cent to hit a multi-year low of 67.05 on the BSE.
The statement has come days after a section of Jet Airways staff claimed to have received assurance from the Minister for taking measures to resuscitate the carrier.
The cash-starved company suspended operations in April and lenders are working on ways for revival of the airline.
After hitting an all-time low of Rs 84.80 per share, Jet Airways' scrips closed 16 per cent lower on Thursday, a day after the exchanges decided to shift the security from Rolling Segment to Trade for Trade Segment.
Stock exchanges will impose restrictions on trading in Jet Airways shares from June 28 as part of preventive surveillance measures to curb excessive volatility, according to a circular.
Out of the fine amount, each pilot will get compensation of Rs. one lakh, each air hostess will get Rs. 50,000 and each passenger will be paid Rs. 25,000 for misery undergone by them.
The tribunal issued notices to Jet Airways and banks which own the airline now and posted the matter for further hearing on June 13 when it will decide on admitting or rejecting the bankruptcy pleas.
Even as the lenders and the employees hope against hope and expect a white knight to rescue the grounded Jet Airways, the airline's promoter Naresh Goyal, now deboarded from the pilot seat, knew weeks back that it was time to abandon the sinking ship.
Noting that the grounding of Jet Airways was "very sad", Ajay Singh said that internal factors and high costs were among the reasons for its failure
Former Jet Airways chief promoter Naresh Goyal and his wife Anita were offloaded from a London-bound flight and barred from leaving India this morning by immigration officials, sources said here on Saturday.
British carrier Virgin Atlantic Tuesday announced the resumption of its daily services to the city from London's Heathrow, starting October, after discontinuing its flights to the city four years back.
Shares of grounded Jet Airways surged nearly 15 per cent on Tuesday after diversified Hinduja Group said it is evaluating the opportunity to invest in the airline.
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