Jet Airways: Decision on funding carrier will be a collective decision says PNB CEO

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Public sector Lender Punjab National Bank (PNB) on Wednesday said that any decision pertaining to infusion of funds to the liquidity crunched Jet Airways would be taken collectively by the lenders and not on standalone basis by the state lender itself.

The statement comes after the circulating media reports of ₹2050 crore emergency fund infusion by PNB to Jet Airways. Clearing the matter, Jet in an exchange filing said that it has not received any kind of funds or loan from PNB.

Commenting on the decision to lend further to carrier, Managing Director and CEO, PNB, Sunil Mehta said, “No, we are going collectively. The resolution will come with the participation of the stakeholders and we are working on it.”

He further asserted that the deliberation on the on going resolution plan have been going on between a SBI led lenders consortium and various stake holders of airline.

Jet Airways has a debt of about ₹8000 crore and the airline is facing its worst financial crises and isn’t able to pay rental to its lessor and salaries to its staff which is leading to grounding of about 40% of its fleet. The debt resolution plan by SBI led consortium seems to be last life line of Jet Airways which can bring out the carrier from the downward spiral of loans and rising debt.

Last week, in a letter to Etihad Airways CEO Tony Douglas, founder Naresh Goyal, sought an urgent funding from the its foreign partner Etihad Airways of ₹750 crore, citing “the very precarious” condition of airline which has forced the airline to ground about 40% of its fleet. Eithad Airways as of now has reportedly not taken any decision on this matter yet.

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