- Friday, April 26, 2024
By: Radhakrishna N S
SHARES of India’s grounded airline, Jet Airways recorded a steep fall today (11) after a report that Hinduja Group and Etihad Airways may not invest in the troubled airline.
Family business, Hinduja Group earlier said that it was considering a bid for Naresh Goyal founded airline.
Etihad, a minority stakeholder in the company had submitted a bid for debt-ridden airline in May.
Indian business daily, Mint reported that Hinduja Group had decided to stop negotiations for purchasing a stake in Jet Airways while Middle Eastern carrier had put its plan on hold to invest further in the company.
Owners of the Hinduja Group have expressed their worry over the ongoing probe by the Indian government Jet Airways and insolvency petitions filed by its creditors, Mint reported, citing a source familiar with the matter.
Jet Airways shares on Bombay Stock Exchange (BSE) today (11) closed at Rs 111.95, a fall of 10.58 per cent when compared to the previous close.
The company shares, which had shed nearly 69 per cent in 12 months as of Monday’s (11) close.
Meanwhile, both Etihad and the Hinduja Group are also focusing on the Mumbai bench of National Company Law Tribunal (NCLT) where two creditors of Jet Airways have filed their petitions on Monday (10), media reports said.
The two operational creditors, Shaman Wheels and Gaggar Enterprises moved the NCLT seeking bankruptcy proceedings against the airline.
The tribunal issued notices to Jet Airways and its lenders led by the State Bank of India (SBI) which own the airline now and adjourned the case for further hearing on June 13.
Jet Airways struggled to compete with low-cost carriers like IndiGo and SpiceJet that now dominate Indian skies and the debt-laden carrier was forced to ground its entire fleet in April, resulting in the loss of more than 20,000 jobs.
Jet has debts of over $1 billion and been in a tailspin for months. It defaulted on loans and failed to pay much staff since the start of the year.
After its lenders declined to extend more funds, the carrier was forced to ground its entire fleet on April 17, triggering protests by thousands of employees who have been not paid salaries.
