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Jet Airways seeks emergency funds, operates only 5 planes

17 April 2019

PNB is part of a consortium of 26 lenders, led by State Bank of India (SBI), which have exposure to Jet Airways' debt of over Rs 8,000 crore.

Sources in the know told India Today that the lenders are unlikely to extend any interim funding as of now - they want to weigh the seriousness of bids received for the recently-concluded stake sale before firming up any funding plans. "SBI is working on the emergency funding, everything is under discussion, nothing is finalised".

Debt-laden Jet Airways likely to temporarily shut down its operations as the lenders failed to approve emergency fundings, sources familiar with the matter told CNBC-TV18.

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Bankers and an Indian government official said lenders are trying to line up funds to keep aloft the once-dominant Indian airline, whose shares earlier on Tuesday slumped to their lowest levels since August 2015. The latest meeting with lenders on Monday too remained inconclusive. The airline's fleet has shrunk to seven aircraft from 119, a few months back.

Jet Airways is grappling with acute financial crunch and is operating less than 10 planes besides temporarily suspending global operations till 18 April.

Only the shortlisted candidates will be allowed to bid, said the sources on condition of anonymity. Jet CEO Vinay Dube is believed to have written a letter to chief lender SBI in this regard.

It said that the operations have been severely impacted due to the liquidity conditions and added "The company's leadership, in consultation with its Board of Directors, is engaged with lenders in connection with the said emergency funding request to arrest further deterioration of its services and minimize inconvenience to its guests".

On the traded volume front, 48.67 lakh shares of the company were traded on the BSE and over five crore shares on the NSE during the day.

Jet Airways seeks emergency funds, operates only 5 planes