Jet Airways loses last 2 directors; shares tank 43%

NEW DELHI: The endgame for Jet Airways has began with lenders deciding to take the airline to insolvency court. The airline’s last two closing administrators — Ashok Chawla and Sharad Sharma — have resigned from its dysfunctional board.

Jet Airways insolvency procedure to begin

After failing of their efforts to find a purchaser for Jet Airways, lenders have decided to begin insolvency court cases against the grounded airline. SBI had received just a conditional bid, which was matter to lenders arranging for regulatory exemption on an open offer.

And the airline’s share — whose buying and selling will quickly be limited — was down 42.75% on BSE at 2.20 pm on Tuesday. At that point, the scrip was at Rs 38.60, down Rs 29.70. The inventory closed 40.70% decrease on the 30-share BSE index at Rs 40.50.

“We wish to inform you that Ashok Chawla and Sharad Sharma resigned as independent administrators of the company with effect from Monday (June 17) in view of the board continuing to be in non-compliance with provisions of the Companies Act, no further administrators being appointed and the method of bank-led resolution plan now not transferring ahead,” Jet said in a regulatory filing on Tuesday.

Jet failure a 'get up name'; part of blame at doorstep of policymakers: SpiceJet's Ajay Singh

The failure of Jet Airways must be a "wake up call" for the aviation business and no less than part of the blame must be at the doorstep of the policymakers as the fee structure is high, SpiceJet chief Ajay Singh has said.