Sunday, January 06, 2019

Jet Airways, bankers to meet airline’s vendors, lessors to discuss debt plan

New Delhi: India’s debt-laden Jet Airways is close to reaching a deal with State Bank of India for a fresh loan of 15 billion rupees ($215 million) to meet its working capital needs, two sources aware of the matter told Reuters.

The airline has scheduled a meeting on Jan. 8 with its vendors and lessors, many of whom are getting increasingly concerned over non-payment of dues, and officials from State Bank of India (SBI) to discuss the debt restructuring plan, the first source with direct knowledge said.

The bankers are being called to the meeting to reassure the creditors, some of whom are expected to come to India from overseas, that Jet is working toward securing funding and has a repayment plan which it will share with them, said the first source.

Jet, India’s biggest full-service carrier by market share, owes money to pilots, lessors, banks and vendors. Its problems have been exacerbated by higher oil prices and intense pricing competition in the domestic market.

The airline, part owned by Etihad Airways, was in talks with the Abu Dhabi-based carrier to infuse more equity, but any money would be conditional on Jet’s founder Naresh Goyal ceding control, sources have told Reuters.
05/01/19 Parvez Jabri/Business Recorder

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