Jet fails to get interim funding, extends suspension of int'l flights

A Jet Airways aircraft waiting at an airport
Jet Airways Chief Executive Officer Vinay Dube said on Monday the company has not received interim funding from lenders and would extend the suspension of international flights until Thursday.

The airline, which has debt of more than $1.2 billion, has had to ground over two-thirds of its fleet over unpaid dues to leasing companies.

"The current status of our engagement with the lenders and other related matters shall be placed before the board tomorrow morning, where the management will seek guidance from the board on the next steps forward. We will keep you updated on all critical developments," Dube said in an internal e-mail, according to PTI.

On March 25, the airline's board had approved 'the debt resolution plan', under which SBI-led consortium would provide an emergency loan of Rs 1,500 crore and in turn acquire majority stake, following which founder chairman Naresh Goyal and wife Anita would leave the airline and pare his stake to around 25 percent.

But banks have so far only under Rs 300 crore has been disbursed that too in small amounts, citing procedural delays.
(With inputs from PTI and Reuters)

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