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Jet Airways seeks 57.5 million USD loan for critical operations to continue

Christian Fernsby |
India’s struggling airline Jet Airways has sought 57.5 million U.S. dollars of urgent funding requirements from lenders, critical to the continuation of the operations of the airline after a day-long Tuesday meeting with the lenders without a tangible outcome, airline officials said late Tuesday.

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Earlier, as part of the debt restructuring proposal, the lenders who had earlier promised 216 million U.S. dollars but had only transferred 36 million dollars making it difficult for the airline to operate its dwindling fleet which has largely been grounded.

In an email sent to its employees on late Tuesday, Vinay Dube, CEO, Jet Airways said, “The company’s leadership continued its engagement with the Indian lenders (led by State Bank of India). The Company, under guidance of the board has reached out to our lead lender, State Bank of India yet again and stressed on the need for urgent funding requirements, critical to the continuation of the operations of our airline.”

We have highlighted the specific areas that will be immediately impacted, should the funding not be forthcoming, Dube said.

“We continue to work proactively with the Indian lenders to provide all the support which may be required, to help us resurrect Jet Airways, including working closely with the potential parties that are keen on bidding for the airline,” Dube said assuring the employees about the management efforts in the email.

Late on Tuesday evening, in a response sought by Bombay Stock Exchange to unconfirmed media reports that the airline was temporarily shutting down its operations, Jet Airways said, “In view of the critical liquidity position of the company, its operations have been severely impacted.”

But the airline was operating five aircraft, which was minimal requirement for their operational licenses to continue, as per airport sources.

Banking sources also indicated that lenders were not looking to take the airline laden with 1.15 billion U.S. dollars debt to the bankruptcy court and have received six bids so far for the 75 percent stake offered in the ailing airline.

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