Crisis-hits jet airways as it has defaulted on loan repayments to the banks, due to which their share fell down to 3% to Rs. 271.50 on BSE.
The company said in an exchange filing that “Payment of interest and principal installment due to the consortium of Indian banks (led by State Bank of India) on December 31, 2018, has been delayed due to temporary cashflow mismatch and the company has engaged with them in relation to the same.”
The airline is facing heavy money crisis and have delayed the payment of salaries to pilots, senior management, vendors and aircraft engineers.
Naresh Goyal-controlled airline, which has posted three consecutive quarterly losses of over Rs 1,000 crore each since March, already has as much as Rs 8,052 of debt on its books as on September 30.
The company is in talks with its second highest stakeholder and henceforth Ethihad with 24% stake is helping them raise funds
The airline is engaged with the banks to help them raise fresh funds in relation to the loan repayment.
Icra declined Jet airways short and long term rating fund facilities on Wednesday, pointing out the company’s payment delays.
Icra quoted that, there have been delays in the implementation of the proposed liquidity initiatives by the management, which have aggravated its liquidity. The company has already been delaying its employee salary payments and lease rental payments to the aircraft lessors.
Intense pricing competition, a weak rupee and rising fuel costs weighed on the country’s airlines in 2018. (FRONT PAGE, SNIPPET)