Since the beginning of this month, Jet Airways' stock has taken quite a beating on the back of one bad news after another. It's currently down 12% on the BSE, and things seem to be getting harder for the financially-troubled airline.
Citing sources in the know, The Economic Times reported that Jet Airways CEO Vinay Dube personally met the State Bank of India (SBI) top brass seeking its support in the time of need. But the latter is not exactly rushing forward with emergency funding. SBI reportedly wants details on the airline's future plans and cash flow position as well as sufficient collateral before opening the credit tap.
"Yes, we had a meeting with the Jet management where they have sought liquidity support from us," a source told the daily. "They can be supported further but the final decision will depend upon the plan they submit. Whether there will be a stake sale or some strategic partnership where some fund infusion will happen, that is not clear yet. I would like to keep my money secure, further support will depend on exclusive guarantees... that ring fencing is very important to the bank."
13/04/18 Business Today
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Citing sources in the know, The Economic Times reported that Jet Airways CEO Vinay Dube personally met the State Bank of India (SBI) top brass seeking its support in the time of need. But the latter is not exactly rushing forward with emergency funding. SBI reportedly wants details on the airline's future plans and cash flow position as well as sufficient collateral before opening the credit tap.
"Yes, we had a meeting with the Jet management where they have sought liquidity support from us," a source told the daily. "They can be supported further but the final decision will depend upon the plan they submit. Whether there will be a stake sale or some strategic partnership where some fund infusion will happen, that is not clear yet. I would like to keep my money secure, further support will depend on exclusive guarantees... that ring fencing is very important to the bank."
13/04/18 Business Today
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