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    Jet Airways stares into abyss as banks refuse funding support

    aviation | IST

    Jet Airways stares into abyss as banks refuse funding support


    Jet Airways' survival remained under serious threat after its lenders Monday deferred a much-anticipated decision to provide emergency funds to the carrier following a marathon meeting, even as its pilots' union appealed to the lenders and the prime minister to save the airline.

    Lenders are unlikely to extend any interim funding for Jet Airways as of now, sources told CNBC-TV18 on Monday, adding that they will weigh the seriousness of bids received before firming up on plans on funding.
    The decision on the interim financing may be taken only after Expression of Interests (EoIs) are legally vetted, said the sources, who did not want to be named.
    “The bid process for an orderly sale of equity in Jet Airways is currently being run by SBI CAPS and is being vetted by the legal team. The prospective bidders will be shortlisted by SBI CAPs shortly,” State Bank of India said in a statement. SBI is acting on behalf of the group of lenders as part of the bank led resolution process.
    No decision on interim funding has further led to extension of the suspension of the airline's international operations.
    "As you are aware, we have been working with the lenders to secure interim funding for our operations. The interim funding has not been forthcoming thus far, and as a result of this, we have extended cancellation of international operations through Thursday, April 19," CEO Vinay Dube said in a letter written to staff.
    Dube added that the current status of the engagement with the lenders and other related matters will be placed before the Board in the meeting scheduled for Tuesday.
    Jet Airways has more than Rs 8,000 crore in debt and is looking for urgent liquidity infusion to pay its pilots, engineers and make payments to its lessors.
    As per ICRA's report, the airline had large repayments due in March to the tune of Rs 1,700 crores and further Rs 2,445 crore due in FY20 and Rs 2,168 crore due in FY21.
    (With inputs from PTI)
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