Jet Airways Bankruptcy Hearing From Wednesday; Founder Naresh Goyal 'Deeply Distressed'

Jet Airways share price hits fresh all-time low of 32.25 after revival hopes for airline crash

Jet Airways share price hits fresh all-time low of 32.25 after revival hopes for airline crash

This comes after the lenders were unable to find a suitable investor and received only a conditional bid, they said in a statement.

The National Company Law Tribunal (NCLT) filing for Jet Airways is expected to take place before the next hearing.

"After due deliberations, lenders have made a decision to seek resolution under Insolvency and Bankruptcy Code since only a conditional bid was received and requirement of the investor for SEBI [Securities and Exchange Board of India] exemptions and resolution of all creditors is possible under Insolvency and Bankruptcy Code", the consortium of lenders, led by the State Bank of India, said in the statement. While Shaman Wheels is a motor dealership based in Mumbai, Gaggar Enterprises is a mineral water producer in Ahmedabad. Apart from banks, the airline also owes over 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.

Jet Airways shares crashed 53 percent intraday to hit a record low of Rs 32.25 but managed to show some recovery in late trade on June 18, after State Bank of India filed insolvency petition against the company to recover dues.

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Jet Airways' lenders, led by the State Bank of India (SBI), have chose to initiate bankruptcy proceedings against the cash-strapped airline, sources told CNBC-TV18. Eithad Airways, which was a minority Jet stakeholder under Naresh Goyal's ownership, was in talks with Hinduja Group for a bid but it didn't materialise.

The lenders have been trying to sell the airline since the past five months, but failed due to many reasons.

Running out of cash, Jet Airways suspended its entire operations on April 17.

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