Jet Airways delays interest payment on bond

Mumbai

JET Airways India Ltd said it will miss a bond interest payment and grounded more planes as lenders work on a plan to restructure the cash-strapped carrier's debt.

It is delaying a payment due on March 19 "owing to temporary liquidity constraints", the company said in an exchange filing. The airline has been forced to ground planes as negotiations between lenders and major shareholder Etihad Airways PJSC over the terms of a bailout plan continue. It barred four more planes from flying on Monday, bringing the total to at least 41.

"Due to operational reasons, Jet Airways has cancelled a number of flights to and from Abu Dhabi," an Etihad spokesperson said. "All affected Etihad guests have been rebooked onto alternative Etihad operated flights or offered refunds as per standard policy."

Jet Airways, which needs 85 billion rupees (S$1.68 billion) to help it get back on its feet, is seeking a revival with banks becoming the biggest shareholders of the company, it said last month.

Lenders led by State Bank of India want Jet Airways to stay afloat, and expect to decide on a debt-resolution plan in a week, Rajnish Kumar, the chairman of the nation's biggest lender, said on March 15. BLOOMBERG