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Cash-strapped Jet Airways defaults on debt payment to banks led by SBI

The 25-year-old airline is facing financial difficulties and owes money to pilots, lessors and vendors

Reuters 

Jet Airways

Debt-laden Ltd has delayed the payment to a consortium of Indian banks, led by State Bank of Ltd, the said late Tuesday.

The payment of interest and principal instalment was delayed "due to temporary cash flow mismatch" and the company is in talks with the consortium. The deadline for the payment was Dec. 31, 2018, Jet said in a statement.

The 25-year-old is facing financial difficulties and owes money to pilots, lessors and vendors. Intense pricing competition, a weak rupee and rising fuel costs weighed on in 2018.

Jet and its second-largest shareholder are in talks with bankers on a rescue deal that may involve the Abu Dhabi-based increasing its stake from 24 per cent.

First Published: Wed, January 02 2019. 08:31 IST
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