Debt-ridden Jet Airways has defaulted on advance reimbursement to banks, following which its FICO assessment has been minimized. In an announcement to BSE.
JET Airways Evasions On Debt Repayment to Banks
The airline late on Tuesday said: “Payment of interest and principal instalment 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.”
An in another regulatory filing with BSE on Wednesday, the airline said: “ICRA Limited has revised the long term rating (assigned to long term loans and non-convertible debentures) to ICRA-D from ICRA-C. The short term rating has been revised to ICRA-D from ICRA-A4. This rating downgrade considers the delay by the company in the payment of interest and principal installment due on December 31, 2018, due to cash flow mismatches and delays in the implementation of proposed liquidity initiatives by the company.”
Jet has been confronting a serious cash crunch and has postponed installment of pay rates to pilots, aircraft specialists and senior administration. JET is supposedly has held converses with a few financial specialists like Tata Group for grabbing a stake in it. While the discussions with Tatas have apparently separated, Jet is currently in cutting edge converses with Abu Dhabi-based Etihad — which has 24% stake in it — for expanding its stake and putting in assets.
Jet, which has detailed had three back to back quarters over Rs 1,000 crore loss each, had Rs 8,052 of obligation on its books September 30, 2018.