TIL Desk/Business/New Delhi/ Jet Airways has defaulted on loan repayment that was due end of December, in yet another definite sign of a serious financial crisis at the country’s second largest airline by market share. Jet’s lenders will now have to initiate the process for resolution of the stressed assets within 180 days as per the Reserve Bank of India norms. Over the past several months, the airline has struggled to pay vendors and staff salaries on time.
The latest default has prompted ICRA to assign a ‘D’ rating to the airline’s Rs 10,963 crore fund and non-fund based facilities. This is the seventh rating downgrade for Jet since March 2017. Loan instruments which are in default or those expected to touch that mark soon are assigned ‘D’ rating, according to the rating agency.
A senior official at the Directorate General of Civil Aviation said the regulator would carry out a fresh financial audit of the airline following the default. This is to ensure that financial stress does not impact the airline’s safety. The airline’s stock fell 6.16 per cent and closed at Rs 263.75 on the Bombay Stock Exchange on Wednesday.
