Prince Mathews Thomas Moneycontrol News
Troubled airline Jet Airways needs to put together a deal soon enough as it faces a stiff debt repayment schedule, which includes payment on a loan of Rs 200 crore by February 13.
The company, which owes banks Rs 8,400 crore, has already defaulted once. It had to make repayments on loan amounting to Rs 100 crore, by December 31, 2018. But in a statement, the company said the payment "has been delayed due to temporary cash flow mismatch."
According to RBI norms, a default has to be corrected within 180 days; failing which the defaulter gets referred to insolvency courts.
The February 13-payment is part of the larger Rs 1,700-crore loan repayments that the company needs to do by March 2019.
But with talks stuck because of conditions put down by each side - Jet Airways, banks and possible investor Etihad Airways - the management of the Indian airline is racing against time to stitch a deal.
Conditions
Reports earlier on Thursday said Jet Airways promoter Naresh Goyal is open to investing Rs 700 crore in the airline. But the entrepreneur wants assurance that his stake doesn't go below 25 percent, from the present 51 percent.
Etihad, which had invested in Jet Airways in 2013 at Rs 754.74 a share, holds 24 percent in the Indian airline.
The Abu Dhabi based airline is also ready to infuse funds into Jet Airways but has offered to make the investment at a rate that is reportedly below the Indian carrier's present stock price.
Jet Airways' stock ended Thursday, up 5 percent at Rs 284.80 a share.
The lenders, led by State Bank of India, are looking at a resolution plan that will assure them that the airline can be turned around. They had met Jet Airways executives on Wednesday to discuss a resolution plan.
"We wish to clarify that the resolution plan is presently under active discussion amongst the stakeholders and the various options therein...," the airline had said in a statement on Thursday to the Bombay Stock Exchange.
At the same time, Jet added that the talks are "yet to be crystallised and agreed to by the stakeholders."
The Naresh Goyal-led airline has been battling a severe liquidity crunch that saw it delaying salaries to its pilots. It also defaulted on debt repayment in December.
"SBI in consultation with the other members of the consortium and the other stakeholders has been working on a comprehensive resolution plan towards a turnaround of the company," added the statement.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
