Jet Airways likely to get Rs 1000-cr emergency fund today

Jet Airways likely to get Rs 1000-cr emergency fund today
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New Delhi, Apr 14: The lenders’ consortium, led by State Bank of India, is actively considering a proposal to infuse Rs 1,000 crore into Jet Airways immediately to keep it afloat, despite a lack of consensus among banks on emergency funding. The money is expected to be disbursed after the Jet management submits an operational plan on how it intends to use the money till May 7.
Clearly trying to fast-track the resolution process after the intervention of the Prime Minister’s Office (PMO), lenders have asked the airline management to give a plan by Monday (April 15), outlining the operational requirements. The earlier banks-led resolution plan announced on March 25 included disbursing Rs 1,500 crore through long-term debt instrument. But only 5 per cent of it was disbursed in small tranches, putting the survival of the airline in question.
The revised plan to infuse Rs 1,000 crore comes after a meeting of civil aviation secretary Pradeep Singh Kharola and top officials in the PMO Friday evening. The high-level meetings were prompted by a warning signal from the Jet management that the airline was left with funds to survive only till April 15. Jet is currently flying seven planes out of its original fleet of 120. It has repeatedly defaulted on payment to aircraft leasing firms, oil companies, vendors due to a severe cash crunch and a piling debt of over Rs 8,500 crore. Earlier, this week, the airline suspended all its international flights, while its employees organised a protest march for non-payment of salaries.