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Jet shares sink, but lenders hopeful of successful bids for grounded airline


Added 04-18-19 01:03:01am EST - “Jet Airways shares sank 34 percent on Thursday in a sign investors were skeptica...” - Reuters.com

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Posted By TheNewsCommenter: From Reuters.com: “Jet shares sink, but lenders hopeful of successful bids for...”. Below is an excerpt from the article.

MUMBAI (Reuters) - Jet Airways shares sank 34 percent on Thursday in a sign investors were skeptical about a revival, even as lenders to the carrier said they are “reasonably hopeful” the bidding process for the grounded Indian airline will end successfully.

Jet Airways, once India’s largest private airline, on Wednesday evening halted all flight operations indefinitely after lenders led by State Bank of India declined to extend more funds to keep it going. Jet shares plunged to the lowest since April 2009 in early trade on Thursday.

The carrier, saddled with roughly $1.2 billion of bank debt, has been teetering for weeks after failing to receive a stop-gap loan of about $217 million from its lenders, as part of a rescue deal agreed in late March.

Investors have doubts over whether a successful deal can be completed, said Shukor Yusof, the head of aviation consultancy Endau Analytics. “Jet Airways’ value is dwindling with each passing day,” he added.

At its peak, Jet operated over 120 planes and well over 600 daily flights. The airline, which has roughly 16,000 employees, has in recent weeks been forced to cancel hundreds of flights and to halt all flights out of India as funds dried up.

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