Jet Airways has denied recent Indian media reports that it had secured a new R20.5 billion ($295 million) credit facility from Punjab National Bank (PNB).
It clarified that while the company has existing credit facilities of $300 million from PNB, “no fresh credit facilities, as reported, have been provided by PNB”.
The carrier issued the denial after being queried by the National Stock Exchange of India and the BSE. This came less than a day after it disclosed that it would delay a repayment due on 11 March for a working capital facility due to “temporary liquidity constraints”. The lenders involved in that facility were not identified.
The embattled carrier is working through a bank-led resolution plan, which aims to cover a Rs85 billion funding gap through a series of new debt, equity, aircraft sales and a debt-for-equity swap with a consortium of banks and other lenders.
The State Bank of India is leading the bailout plan, and is reportedly in discussions with 24% shareholder Etihad Aviation Group and chairman Naresh Goyal to finalise the debt swap and a new rights issue for the carrier.
In the meantime, the carrier has been forced to ground at least 28 aircraft for defaulting on lease rental payments, with FLY Leasing indicating that it plans to take three Boeing 737-800s back if the resolution plan is not finalised by the end of March.