The share price of Jet Airways was locked in a 5 percent upper circuit for the ninth straight session on Tuesday after agreed on a revival plan for the bankrupt aircraft carrier.
During this period, the stock surged as much as 54 percent. However, the stock has given over 250 percent return in the past 7 months.
The resolution plan submitted by the consortium of UK-based Kalrock Capital and UAE-based entrepreneur Murari Lal Jalan secured over 99 percent of the votes from the committee of creditors.
The sentiment was also lifted on hopes that Jet Airways may just fly again after almost 18 months of being grounded. Jet Airways has been grounded since April 17, 2019, due to a massive liquidity issue. Various classes of creditors have collectively made claims of Rs 40,259.12 crores against Jet Airways in NCLT.
Ashish Chhawchharia, the resolution professional of the airline, believes that if all approvals are in place, Jet Airways can fly within the next four to six months. In an interview to CNBC-TV18 , Chhawchharia said, “Jet 2.0 will comprise of domestic and global routes. The new owners will have to partner with global players (given the lack of experience in the aviation sector).”
Banking executives confirmed to CNBC-TV18 that the offer entails a total payout of Rs 866 crore to all creditors. Of this, the Kalrock-Jalan consortium has offered Rs 380 crore to financial creditors, and another Rs 391 crores in the form of non-convertible debentures (NCDs).
The Kalrock-Jalan consortium has already put in place a management team to restart operations at the earliest, the resolution professional of the airline said. He added that Jet Airways currently has 12 aircraft, in India and abroad, and the new owners may bring in more modern aircraft.
20/10/20 Pranati Deva/CNBC TV18
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