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Jet Airways defaults on loan repayment !!!

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Jet Airways, Fund-starved Jet Airways, State Bank of India, SBI, Jet Airways debt, civil avaition, Jet Airways shares, naresh goyal, indian express

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“This is to inform you that the payment of interest and principal installment due to the consortium of Indian banks (led by State Bank of India) on December 31, 2018 has been delayed due to temporary cashflow mismatch and the company has engaged with them in relation to the same,” it said in a stock exchange filing. The company’s liquidity position is stressed, with operating losses, high debt levels and a negative networth

According to ICRA, the ratings downgrade considers the delays by the company in the payment of the interest and principal installment due on December 31, 2018 due to cash flow mismatches. “There have been delays in the implementation of the proposed liquidity initiatives by the management, which have aggravated its liquidity. The company has already been delaying its employee salary payments and lease rental payments to the aircraft lessors,” it said.

Though the airline has been in discussions with banks for a short-term loan, cautious bankers asked for a concrete plan for the revival of the airline after they burnt their fingers in Vijay Mallya’s Kingfisher Airlines episode. Naresh-Goyal-run airline’s efforts to bring in an investor has not worked out so far. The Tatas had evinced interest to buy stake but the talks got stuck over various thorny issues. “Banks asked for revival plan and more collaterals,” said a banking source.

 

lower crude oil price ..

operators are allowed to import aviation oil  ..

looks like mallya did a better job with kfa :rotfl: 

https://indianexpress.com/article/business/aviation/jet-airways-defaults-on-loan-repayment-icra-downgrades-to-d-category-5520790/

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