Home / Markets / Stock Markets /  Jet Airways share price hits upper circuit after NCLT approves resolution plan

Shares of Jet Airways on Tuesday jumped 5% after the National Company Law Tribunal (NCLT) approved Jalan Kalrock Consortium's resolution plan for the bankrupt firm.

The stock climbed 4.96% to 99.45 apiece, its upper circuit limit on the BSE. The Mumbai bench of the National Company Law Tribunal (NCLT) on Tuesday approved the resolution plan submitted by the Kalrock Capital and Murari Lal Jalan consortium subject to further approvals.

The airline suspended operations on April 17, 2019 due to financial distress and has been undergoing a resolution process under the Insolvency and Bankruptcy Code (IBC) for two years. It had become a scheduled carrier in 1995.

In October 2020, the Committee of Creditors (CoC) of the grounded airline had approved the resolution plan submitted by a consortium of UK's Kalrock Capital and UAE-based entrepreneur Murari Lal Jalan.

The airline fell into bankruptcy in 2019 after failing to repay debts. A rescue plan was laid out last year by Dubai-based businessman Murari Lal Jalan and Kalrock Capital Management Ltd., a London-based financial advisory and alternative asset manager.

In June 2019, NCLT admitted the insolvency petition against Jet Airways filed by the lenders' consortium led by the State Bank of India.

Jet Airways has almost 21,000 creditors seeking claims of around $6 billion. It has lost most of its landing slots in the time it hasn’t being flying.

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