Shares of cash-strapped Jet Airways slumped over 54 percent intraday after CNBC-TV18 reported that State Bank of India filed an insolvency petition against the airline and proposed Ashish Chhawchharia of advisory firm Grant Thornton as the resolution professional.

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At 2.40 PM, the share price was down 43.42 percent to Rs 38.70 per share on the NSE. In last one month, the stock fell over 76 percent, and it plunged about 91 percent in last one year.

The stock witnessed a free-fall, eroding Rs 2,800 crore in market capitalisation in last six months. In January 2018, its market cap stood at nearly Rs 10,000 crore which now has become Rs 400 crore. In the last 9 trading sessions, the stock fell about 76 percent.

The consortium of lenders led by the State Bank of India moved Mumbai bench of National Company Law Tribunal (NCLT) against the airlines. The SBI also proposed Ashish Chhawchharia of advisory firm Grant Thornton for the vital role of the interim resolution professional (RP) for Jet Airways.

Chhawchharia leads the restructuring practice of Grant Thornton in India. His job as an RP would be to manage the affairs of the stressed company, facilitate the bidding process and balance the stakeholders’ interest.

The banks had to take the NCLT route after no acceptable offers were received for the beleaguered airlines. On April 17, the airlines stopped its operations after it mounted a pile of debt of about Rs 8,500 crore and liabilities worth Rs 25,000 crore.

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First Published:Jun 18, 2019 10:00 AM IST