Distressed airline Jet Airways on March 11 said it has defaulted on repayments on external commercial borrowings due to a paucity of funds.
The disclosure, in a statement to the Bombay Stock Exchange, comes even as the board of its partner Etihad Airways is meeting in Abu Dhabi to discuss a possible investment.
"This is to inform you that the part repayment of the External Commercial Borrowing availed by the company, for working capital purposes, falling due on 11 March 2019, has been delayed owing to temporary liquidity constraints and the company has engaged with the lender in relation to the same," said the airline.
Jet Airways has a debt of over Rs 8,000 crore and needs to make repayments of up to Rs 1,700 crore by the end of March. The acute liquidity crunch has forced it to ground aircraft, shut down stations and delay salary payments to its pilots and engineers.
Earlier in the day, PTI reported that Jet Airways Chairman Naresh Goyal has written to Etihad seeking urgent funding of Rs 750 crore. Citing the letter, the wire agency added that 50 of the airline's planes have been grounded.
Jet Airways also clarified it has not received Rs 2,050 crore loan from Punjab National Bank, as was reported by Mint. "Further, please note that the Company has existing credit facilities of $300 mn from Punjab National Bank (PNB) and that no fresh credit facilities, as reported, have been provided by PNB," it said.