Bankruptcy court-bound Jet Airways loses last 2 directors; share price crashes 43%

NEW DELHI: The endgame for Jet Airways has started with lenders deciding to take the airline to insolvency court. The airline’s last two remaining directors — Ashok Chawla and Sharad Sharma — have resigned from its dysfunctional board. And the airline’s share — whose trading will soon be restricted — closed 40.8% down BSE Tuesday at Rs 40.45. The airline’s IPO in 2005 was priced at Rs 1,100. “We wish to inform you that Ashok Chawla and Sharad Sharma resigned as independent directors 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 additional directors being appointed and the process of bank-led resolution plan not moving forward,” Jet said in a regulatory filing on Tuesday.While many are wondering if Jet founder Naresh Goyal had sold the airline earlier when it possibly had some interested players the airline may have escaped this fate, Goyal has issued a statement saying: “I feel sad and deeply distressed mainly for our loyal employees who have waited months and were anxiously and hopefully awaiting a positive outcome to the bank-led resolution plan. I can only hope and pray that even now a solution can emerge and Jet can fly and fulfil the needs not only of employees but of air travellers who feel the absence of the joy of flying.”Jet employees, both past (who left in recent months) and present are now keeping their fingers crossed in the hope of getting some of their salary dues from the insolvency process. “Banks had promised emergency infusion that could have ensures the airline keeps flying and finds a buyer. Who will buy a grounded airline with no planes, slots? At least we must get our salary dues,” said a senior pilot who worked with Jet for years.