Jet Airways falls 5% on reports of SBI planning to move NCLT

NEW DELHI: Shares of Jet Airways declined 5 per cent in early trade on Monday after reports emerged that SBI may approach NCLT to recover its loans from the debt-ridden airline.

A PTI report, quoting SBI officials, suggested that State Bank of India (SBI) is looking at approaching the National Company Law Tribunal (NCLT) to recover its loans from private carrier Jet Airways.

Earlier, shareholders of Jet approved a proposal at the extraordinary general meeting (EGM) on Thursday to convert a part of the company's loans into shares.

This approval was necessary to go ahead with the Provisional Resolution Plan (BLPRP).

As part of the plan, public sector lenders will become the largest equity owners of the airline, virtually making it a nationalised carrier.

Last week, SBI and Punjab National Bank (PNB) had agreed to provide Rs 500 crore emergency funding for Jet Airways.

Shares of the company trimmed some losses and traded 2.72 per cent down at Rs 230.25 on BSE around 10:40 am.