Jet Airways share price falls after SBI considers moving NCLT for recovering loan
BusinessToday.In February 25, 2019
The Jet Airways stock opened lower today amid reports that SBI was considering moving to National Company Law Tribunal as it feels the airline is running out of funds for operations.
The Jet Airways stock fell 2.83% to 225 level compared to the previous close of 236.70 on the BSE.
Jet Airways share price stands at its one week low at 225 points compared to Rs 215 on February 15 with a volume of 294,346.
The development comes days after the shareholders of Jet Airways approved the conversion of loan into shares and other proposals during the Extraordinary General Meeting (EGM), under Regulation 44(3) of SEBI (LODR) Regulations, 2015 on Thursday.
According to banking sources, overseas carrier Etihad, which currently holds 24 percent stake in Jet Airways, abstained from voting on various proposals during the EGM.
Under the BLPRP (Bank led Provisional Resolution Plan) approved by the company's BoD on February 14, lenders would become the largest shareholders in the airline. The lenders are to convert part of the airline's debt into 11.4 crore shares at a consideration of Re 1 per share, as per RBI norms. Jet Airways' share capital before the bailout was Rs 113.60 crore divided into 11.36 crore shares of Rs 10 each.
As on September 30, 2018, the company had gross debt of Rs. 8,411 crore (including terms loans from banks and dues to lessors for aircraft lease), as against Rs. 8,403 crore as on March 31, 2018. The company has large repayments of Rs 1,700 crore due over December 2018 to March 2019, Rs. 2,444.5 crore in FY2020 and Rs. 2,167.9 crore in FY2021. Jet defaulted in servicing its loan obligations on December 31 2018 and the 90-day window before its loans are dubbed non-performing assets (NPA) ends on 31 March 2019. The company is reeling under losses for the last four consecutive quarters with its shares losing over 60% in one year.
(Edited by Rupa Burman Roy)