It seems like there is no resurrection for debt-laden Jet Airways in the near future. The airline is going down the hill day by day with troubles not leaving their side. Amidst the efforts of lenders of Jet Airways which are led by the State Bank of India (SBI), two operational creditors filed insolvency pleas against Jet Airways. Shaman Wheels Pvt Ltd and Gaggar Enterprises Pvt Ltd dragged Jet Airways to National Company Law Tribunal (NCLT).
Fuel to the Fire
Shaman Wheels Pvt Ltd and Gaggar Enterprises Pvt Ltd are the operational creditors of Jet Airways. In order to provide judgment on the insolvency pleas, NCLT will hear the matter on 10th June 2019.
Shaman Wheels Pvt Ltd is a Mumbai based private motor dealership company. The company is engaged in the wholesale and retail sale of new and used passenger motor vehicles and lorries, trailers and semi-trailers. The company used to supply trucks and trailers for Jet Airways. Jet Airways has defaulted on dues of around Rs 6.82 crores of Shaman Wheels. Gaggar Enterprises Pvt Ltd is a mineral water producer based in Gujrat. The company used to provide packaged drinking water to Jet Airways.
The insolvency pleas of the operational creditors of Jet Airways might impact negatively on the efforts of banks. Banks are on still making efforts to revive cash-strapped Jet Airways. Lenders of Jet Airways have been trying to resolve the insolvency crisis outside the NCLT due to fear of little to no recovery.
Cash strapped Jet Airways suspended its operation due to lack of funding, in April 2019. The banks refused for an emergency infusion of cash of about Rs 400 crores requested by the airways. In March 2019, the lenders of the airlines had taken control of the company’s board. This was after Jet Airway’s founder Naresh Goyal and his wife stepped down from the board of the company. The SBI-led consortium has 26 lenders. The airline is going through a bidding process in order to revive itself.
Jet Airways currently is trading at Rs. 124.25 at 2.10 pm on 10th June 2019. The stock has plunged about 45% after the news of shut down from Rs. 261.8 on 15 April 2019. Shares of Jet Airways were trading 8% lower in the morning of 10th June 2019. The stock was trading at Rs 116 apiece