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Bloomberg
Jet Airways India Ltd. said it will miss a bond interest payment and grounded more planes as lenders work on a plan to restructure the cashed-strapped carrier’s debt.
It’s delaying a payment due on March 19 “owing to temporary liquidity constraints,†the company said in an exchange filing.
The airline has been forced to ground planes as negotiations between lenders and shareholders over the terms of a bailout plan continue. It barred four more planes from flying on Monday, bringing the total to at least 41.
Jet Airways, which needs 85 billion rupees ($1.2 billion) to help it get back on its feet, is seeking a revival with banks becoming the biggest shareholders of the company, it said last month. Lenders led by State Bank of India want Jet Airways to stay afloat, and expect to decide on a debt-resolution plan in a week, Rajnish Kumar, the chairman of the nation’s biggest lender, told reporters on March 15.
The beleaguered airline could potentially see some of its leased Boeing Co. 737-800 aircraft reallocated to other carriers, as lessors seek to meet demand for planes after the grounding of Boeing’s newest Max series in several countries.