Jet defaults on loan repayments to banks, shares crash nearly 7%
New Delhi: Crisis-hit Jet Airways Wednesday said it has defaulted on loan repayments to banks, according to a filing.
The full service carrier has been grappling with financial woes for quite some time now and has been making delayed salary payments to staff.
"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," the company said in a regulatory filing.
The company has engaged with them (banks) in relation to the same, Jet Airways added.
Shares of Jet Airways tumbled nearly 7 per cent Wednesday after the news broke out. The stock tanked 6.16 per cent to close at Rs 263.75 on BSE. During the day, it cracked 7.13 per cent to Rs 261. On NSE, shares of the company slumped 6.89 per cent to end at Rs 261.45. The company's market valuation eroded by Rs 195.87 crore to Rs 2,996.13 crore on BSE. In terms of equity volume, 9.66 lakh shares of the company were traded on BSE and over one crore shares changed hands on NSE during the day.
The airline, which is also looking to raise fresh funds, said it has engaged with them (banks) in relation to the loan repayments. Rating agency Icra Wednesday downgraded its ratings on the airline's long-term and short-term fund facilities.