Monday, March 11, 2019

Jet Airways denies report of new $293 mn loan from PNB

New Delhi: India's debt-laden Jet AirwaysNSE 1.71 % Ltd denied a media report on Monday that it had secured a 20.50 billion rupee ($293 million) loan from state-owned Punjab National Bank to help pay overdue plane leasing fees and salaries.
The airline, which has had to ground planes after failing to make payments to leasing companies and is behind on paying pilots' wages, said in a statement to the stock exchange that it has an existing credit facility of $300 million from PNB and that the bank has not provided any fresh credit.
Indian daily Mint had reported earlier on Monday that Jet had secured foreign currency term loans worth 11 billion rupees and a credit facility of 9.50 billion rupees from PNB for its working capital needs, citing an unnamed source.
Jet Airways is saddled with more than a billion dollars in debt and its shares jumped 4.8 percent after Mint's report to 255 rupees, their highest level in over a month. They ended the day 1.7 percent higher in a strong Mumbai market.
The airline issued its statement after the market close. PNB did not respond to a request for comment.
Jet is struggling to make payments to banks, aircraft leasing companies, vendors and pilots.
11/03/19 Reuters/Economic Times