Discussions between the debt-laden Jet Airways and lenders to the struggling carrier, led by the State Bank of India , are still inconclusive as bankers seek to recover dues that missed the repayment deadline in December.
Banks have classified Jet Airways in the SMA-0 category, which includes loans in default between 1 and 30 days, after the airline failed to pay its dues for the month of December.
“The loan is still in the operating portfolio. We have not moved it to stressed loans,” said a senior executive at a large public sector bank. “We are in constant touch with the company and many rounds of meetings have taken place, but no concrete proposal is on the table yet.”
Meanwhile, SBI and its investment banking arm SBI Capital Markets are discussing repayment plans with officials at Jet, although a resolution is yet to be reached, two people familiar with the discussions said. Jet Airways is a borrower from a group of 26 lenders, its 2017-18 annual report said. It has debt of more than Rs 8,000 crore on its books.
Bankers say SBI, which has the largest exposure, is taking the lead in the negotiations. “The best-case solution is for some equity infusion, either through existing shareholders or from someone else. It is still an early default; so, there is hope that normal payments will resume,” said a second person familiar with the account.
12/01/19 Economic Times