Jet Airways to secure Rs 1,500 Crore from SBI

Jet Airways

Debt-laden Jet Airways is set to reach a deal with State Bank of India for a fresh loan of Rs. 1,500 crore ($215 million) to meet its working capital needs.

India’s second-biggest airline’s chairman Naresh Goyal has reportedly approached top bank officials for loan.

The airline will meet with its vendors and lessors on Jan 8 , officials from State Bank of India (SBI) to discuss the debt restructuring plan.

Jet Airways defaulted on debt payment to a consortium of banks, prompting ratings agency ICRA to downgrade the carrier and sending its shares sharply lower.

Cash-strapped Jet Airways and its second-largest shareholder Etihad Airways having a 24% stake, are in talks with bankers about a rescue deal that may involve the Abu Dhabi-based airline increasing its shareholding.

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