Jet Airways denies report of new Rs 2050 crore loan from PNB

Jet Airways denies report of new Rs 2050 crore loan from PNB

New Delhi, Mar 12: Debt-laden Jet Airways Ltd denied a media report on Monday that it had secured a Rs 2,050 crore ($293 million) loan from state-owned Punjab National Bank (PNB) to help pay overdue plane leasing fees and salaries.
The airline, which has had to ground planes after failing to make payments to leasing companies and is behind on paying pilots’ wages, said in a statement to the stock exchange that it has an existing credit facility of $300 million from PNB and that the bank has not provided any fresh credit.
A business daily had reported earlier that Jet had secured foreign currency term loans worth Rs 1,100 crore and a credit facility of Rs 950 crore from PNB for its working capital needs, citing an unnamed source.
Jet Airways is saddled with more than a billion dollars in debt and its shares jumped 4.8 per cent after the report to Rs 255, their highest level in over a month. They ended the day 1.7 per cent higher in a strong Mumbai market.
The airline issued its statement after the market close. PNB did not respond to a request for comment.
Jet is struggling to make payments to banks, aircraft leasing companies, vendors and pilots.
Some leasing companies have forced the airline to ground more than two dozen planes from its fleet of about 120 aircraft prior to potentially moving them out of India as scepticism builds over whether a planned state-led bailout of the carrier can clear their dues on time.
Jet Airways has outlined a draft plan to sell a majority stake to a consortium led by the State Bank of India at Re 1, under regulations that permit banks to convert debt to equity in a defaulting firm.