New Delhi: Cash-strapped Jet Airways on Tuesday said it is awaiting “emergency liquidity support” from the SBI-led consortium of lenders to arrest further deterioration in its services. The airline, which is operating only five planes, said its operations have been severely impacted due to critical liquidity position.
“The company’s leadership, in consultation with its board of directors, is engaged with lenders in connection with the said emergency funding request… The company is also in constant engagement with the Directorate General of Civil Aviation and Ministry of Civil Aviation in this regard,” it said in a filing to the BSE.
The filing was made in response to a clarification sought by the exchange regarding reports that the airline was likely to temporarily shut down its operations. No final decision yet: PNB MD Lenders to the cash-strapped Jet Airways are committed to reviving the air carrier but nothing has been finalised yet, Punjab National Bank (PNB) Managing Director Sunil Mehta said.
PNB is part of a consortium of 26 lenders, led by State Bank of India (SBI), which have exposure to Jet Airways’ debt of over Rs 8,000 crore. “Discussions for reviving the airline are underway and nothing has been finalised as of now. SBI Capital Markets is working on the revival package for Jet Airways,” Mehta told reporters.
On Monday, SBI said the bid process for the orderly sale of equity in Jet Airways is currently being run by SBI Caps and is being vetted by the legal team and the prospective bidders will be shortlisted by SBI Caps shortly. SBI is acting on behalf of the group of lenders as part of the bank-led resolution process.
