INTERNATIONAL – India’s cash-strapped Jet Airways proposed to creditors that it would catch up with debt payments in arrears by September and from April would meet debt payments as they come due, according to a document seen by Reuters.
Jet met with lenders, lessors and vendors in India on Tuesday to discuss its financial situation and a debt-repayment plan, two sources with direct knowledge of the matter told Reuters on condition of anonymity.
Jet did not immediately respond to a request for comment.
The airline has to make large debt repayments over the next few years, starting with about 17 billion rupees (R3.4bn) by the end of March, ratings agency ICRA said in a note on January 2.
The airline last week said it had defaulted on a debt payment to a consortium of Indian banks, led by State Bank of India, that had been due on December 31, prompting ICRA to downgrade the carrier’s credit ratings and sent its shares sharply lower.