Jet Airways shares slump over 17% as investors get anxious before the last word from bankers
- Lenders of grounded
Jet Airwaysare working out different ways to ensure it does not end up bankrupt
- Shares traded on June 17 and traded at a new 52-week low of ₹66.4
- The hearing at insolvency court is expected to be held on June 20
The airline stalled operations on April 17 after the State Bank of India (SBI) refused to extend an additional loan. It has an outstanding loan of around ₹85 billion which it owes to a clutch of lenders.
The spurt in volume of shares traded on June 17 took the stock to a new all-time low of ₹66.4.
The hearing at insolvency court is expected to be held on June 20 after an appeal by two of its creditors, Shaman Wheels and Gagar Enteprises, to recover their dues.
In spite of being the country’s second largest carrier before the ongoing crisis, the airline came under financial stress due to untoward expansion plans leading to debt, coupled with increase in fuel and other operational costs.
How to save Jet
Lenders are now trying various methods like giving an ultimatum to possible bidders like Hindujas and Etihad to close a deal. These talks were known to hit a roadblock after oil to hospitals business group Hindujas as per reports. Yet another option is to sell the ‘Jet Airways’ brand to an interested investor.
Another plan up the sleeve of the lenders who are expected to take a substantial haircut their loan, is to pay up and take charge of Jet’s aircraft. This plan is however how on their agenda for the lenders who have been hoping against hope that this shuttered company does not go down, taking their money with them.