Shares of Jet Airways India Ltd tumbled as much as 15% in early trade on Friday despite media reports saying that efforts to revive the airline have suddenly picked up pace after the National Company Law Tribunal (NCLT) adjourned the insolvency plea against Jet Airways to 20 June.
At 10:23am, the Jet Airways stock was trading at Rs 81.65, down 11.2%, on BSE. The stock has lost over 40% value within this week.
A CNBC TV18 report said that a war room has been created at Jet Airways to provide lenders with all necessary documents and information to lay out a plan to restart operations at the airline.
The move came after lenders held a meeting with Jet Airways officials on Wednesday. The meeting, led by former Jet Airways CEO Cramer Ball, was also attended by a group of five people from Etihad Airways, 5-6 representatives from the Hinduja Group along with officials from the State Bank of India (SBI).
“A lot of key issues were discussed. Legal and operations team have been asked to prepare statements on the critical human resource needed for recommencement of operations at the airline.
Statements on pending payments to operational vendors have also been asked to be made,” the report quoted one person aware of the development as saying.
The report added that the lenders have also asked Jet Airways to prepare the list of vendors who would be able to help the airline resume operations and get the aircraft back into the skies.
“As of now, for the initial part, the stakeholders are looking at a fleet size of under 20…may be around 12-15,” the report quoted another person as saying.
NCLT on Thursday adjourned the plea filed against Jet Airways by two of its suppliers, Shaman Wheels and Gaggar Enterprises, as the airline needed more time to respond to notices for recovery of dues.
The two operational creditors had filed separate insolvency pleas against the airline at NCLT, Mumbai, for recovery of dues on 10 June.
NCLT has now requested Jet Airways representatives to be present for hearing on 20 June, when the bankruptcy court will decide whether to admit or reject the plea of operational creditors.
The banks have been trying to avoid the insolvency court to recover maximum dues. In the scenario of NCLT accepting the petition, the banks will have to join the plea as creditors and will be staring at a huge cut on their dues.