Jet Airways declines 2% on debt payment default

NEW DELHI: Shares of Jet Airways dropped 2 per cent in Wednesday’s trade after the company defaulted on the payment of interest and principal installment due to the consortium of SBI-led banks.

At 9.40 am, the scrip was trading 2.21 per cent lower at Rs 274.85 on BSE.

The airline said that payments were delayed due to temporary cashflow mismatch. The company is engaging with the lenders in relation to the same.

There were reports earlier that the company was in talks with SBI for raising Rs 1,500 crore short-term loan to meet its working capital requirement and some payment obligations, a source said.


Reports had suggested that Jet’s strategic partner and Middle-east carrier Etihad, which holds 24 per cent stake in the Indian full service carrier, was likely to provide a guarantee for the loan.