Struggling Jet Airways Monday said it does not have the money to pay interest to its debenture-holders, due Tuesday.
This is the second time the airline is defaulting on its foreign debt servicing since January 2, when it defaulted on repayments on its external commercial borrowings.
The acute liquidity crunch has forced it to ground aircraft, shut down stations and delay salary payments to its pilots and engineers along with other senior staff.
The airline has, so far, grounded 41 of its planes only on account of non-payment of lease rentals. These don't include other planes which have been taken out of operations owing to non-availability of funds for maintenance.
Following this, the airline has indefinitely suspended its operations from Abu Dabhi, one of its two global gateways the other being one in Amsterdam.
Jet Airways has been struggling to mop up cash to carry out operations.
On 14 February, it board approved a bank-led- resolution plan, whereby lenders would become the largest shareholders in the airline and chairman Naresh Goyal would leave the airline.
Following approval from the shareholders, banks would convert a part of the debt into 11.4 crore shares at a consideration of Re 1 apiece as per the RBI norms.
Last week, SBI sounded hopeful of reaching an early solution for debt-ridden full-service carrier by this week.
Etihad, however, has reportedly not taken a final decision on the pact.