PremiumShares of Jet Airways (India) on Wednesday hit an upper circuit of 5% at ₹104.4 after the National Company Law Tribunal (NCLT) on Tuesday approved Jalan Kalrock Consortium's resolution plan.
Shares of Jet Airways have been hitting an upper circuit since the start of the week, gaining 15.6% for the past three days in a row against a 1% gain in the benchmark index, Sensex.
According to filings to the exchanges, the company said, "By the order pronounced orally, the Mumbai bench of the National Company Law Tribunal approved the resolution plan submitted by the resolution applicant for the corporate insolvency resolution of the company under section 31 of the code".
As part of the revival plan, NCLT has reportedly given 90 days to the Director General of Civil Aviation (DGCA) and aviation ministry to allot slots to the debt-laden Jet Airways. The insolvency plea against the airline, filed by the lenders' consortium led by State Bank of India was admitted by NCLT in June 2019, two months after it was grounded.
The committee of creditors (CoC) approved the resolution plan submitted by the Jalan-Kalrock consortium in October 2020. The consortium proposes to invest ₹600 crore in the first two years to repay creditors and acquire an 89.79% stake in the carrier.
It also proposes to sell existing non-core assets such as realty and luxury cars by the end of the first year and said that it would repay ₹131 crore, ₹193 crore, and ₹259 crore by the end of the third, fourth and fifth years, respectively, to financial creditors from the airline’s cash flows.
From the beginning of the calendar year, Jet Airways lost 14.43% against a rise of 9.87% in the benchmark index, Sensex.
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