NEW DELHI: Cash-strapped Jet Airlines on Monday announced that the part repayment of the External Commercial Borrowing (ECB) availed by the company has been delayed.“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,” the airline said.
Jet Airways, which has debts of over `8,000 crore, has large debt repayments due over December 2018 to March 2019 (`1,700 crore), FY2020 (`2,444.5 crore) and FY2021 (`2,167.9 crore). The airline had already defaulted on a debt payment to a consortium of banks led by SBI.
Separately, Jet Airways chairman Naresh Goyal has sought an urgent funding of `750 crore from its equity partner Etihad, citing the very precarious position of the airline. Owning to severe cash crunch, Jet has been forced to ground over 50 of its planes over non-payment of dues to lessors.
In a letter to Etihad CEO Tony Douglas, Goyal said the airline has secured a go-ahead from the aviation ministry to pledge its shares in JetPrivelege for securing the interim funding. Jet holds 49.9 per cent stake in the loyalty programme, while the majority is with Etihad.
“I now look forward to your support and cooperation in saving the airline by an urgent fund infusion of `750 crore by early next week, so that a matching contribution from banks is also disbursed, as per the resolution plan,” Goyal said in the letter dated March 8. On February 14, Jet Airways’ board had approved a Bank-Led Provisional Resolution Plan, whereby lenders would become the largest shareholders in the airline.
He also warned that if interim funding is not received at the earliest, it will be severely “deleterious” to the future of the carrier and could even result in its “grounding”. Board of directors of Etihad, which currently owns a 24 per cent stake in Jet, held a meeting on Monday to decide on fund infusion into the airline.