Jet Airways has defaulted in repaying HSBC the $109 million loan due on 28th March 2019. This repayment, part of two-tranche facility that was taken up by Jet Airways from HSBC,equated to $140 million in 2014.
It has been revealed that Jet Airways has not repaid the first tranche of $31 million on 11th March. Missed deadlines of loan repayments have led Jet to ground two-thirds of its fleet of aircrafts and has led to the cutting down of its credit rating in the market. Lenders have agreed to pump in $217 million as emergency debt financing, on the condition that Jet Chairman Naresh Goyal step down.
Jet Chairman Naresh Goyal, a former ticketing agent, has stepped down this week from his empire under tremendous pressure. Nothing has been confirmed from Jet or HSBC on the ongoing issue. The airline has communicated that the payment due to a lender on March 28 has been delayed owing to a liquidity crunch.
The communication from Jet further added that it is engaged with the lenders to sort the issue amicably but did not divulgemore information.