Meeting lenders’ repayment obligations, says Jet Airways

The airline says that its account with all the banks as on date is ‘standard’

By: ENS Economic Bureau | Mumbai | Published: August 12, 2018 12:49:43 am
Meeting lenders’ repayment obligations, says Jet Airways The airline had a total debt of Rs 9,430 crore as of March 2018.

Jet Airways on Saturday said the airline — which is facing deteriorating finances — is meeting its payment obligations to banks and employees.

“We are regular in all our payment obligations to all our banks and statutory dues including provident fund obligations. Our account with all the banks as on date is standard,” the company said in a statement on Saturday. The airline had a total debt of Rs 9,430 crore as of March 2018, according to Bloomberg data.

The airline said it was continuously working on ‘various cost and revenue initiatives to mitigate the significant increase in fuel rates and depreciation in the rupee.’ “We have had scheduled amortisations in the past so many years and the company has met its repayment obligations all the time,” it said.

“Our account with all the banks as on date is ‘standard’”, Jet Airways said. It said it had not been placed in any special mention accounts (SMAs) by the banks. SMA is the classification of borrowal accounts which are behind in their loan servicing payments.

On Friday, the BSE and National Stock Exchange (NSE) sought specific details about the company’s board meetings and factors leading to the delay. On August 9, the board of Jet Airways at its meeting deferred publication of its first quarter results as certain matters were still to be closed. The Naresh Goyal-led airline had reported an over Rs 1,000 crore loss in the fourth quarter of financial year 2018.

The BSE said the disclosure by the company regarding the delay in first quarter results lacked “certain information” and Jet Airways should submit complete information that is available with it, for compliance with the requirements of Regulation 30.

In a BSE filing on Friday, the airline said the board of directors has decided not to review the unaudited financial performance for the June quarter. “The audit committee did not recommend financial results to the board for its approval, pending closure of certain matters,” Jet Airways said in the regulatory filing without offering more details.

Shares of Jet Airways on Friday plunged 8.39 per cent to Rs 276.40 on the BSE. It fell 14 per cent intra-day and touched its 52-week low in morning trade after the company deferred announcing the June quarter numbers. The stock is on a downward trend since the last six consecutive sessions and has declined 21 per cent since August 2. Since the start of this year, the stock has tumbled 69 per cent.

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