The Jet Airways share price gained in trade today amid a report that the airline has received a fresh loan of Rs 2,050 crore from Punjab National Bank. Board of directors of Etihad, which currently owns a 24 per cent stake in the domestic carrier, will meet later in the day to decide on fund infusion into the airline. The Jet Airways share price rose 4.69% to 254.50 compared to the previous close of 243.10 on BSE.
Jet Airways share price has been rising for the last six days and clocked 12.21% gains during the period. The stock opened with a gain of 3.31% at 251.15 level. Jet Airways share price has fallen 63.66% during the last one year and lost 10% since the beginning of this year.
Till date, 28 Jet aircraft have been grounded due to non-payment of lease rentals. On February 14, Jet Airways' board had approved a Bank-Led Provisional Resolution Plan (BLPRP), whereby lenders would become the largest shareholders in the airline. Its shareholders also approved conversion of loan into shares and other proposals during the extraordinary general meeting on February 21.
The BLRP by lenders estimated a funding gap of Rs 8,500 crore (including proposed repayment of aircraft debt of Rs 1,700 crore) to be met by appropriate mix of equity infusion, debt restructuring, sale and lease back of aircraft, among other things.
Shareholders of Jet Airways had approved conversion of loan into shares and other proposals during the extraordinary general meeting (EGM) on February 21. As on September 30, 2018, Jet Airways had gross debt of Rs 8,411 crore (including terms loans from banks and dues to lessors for aircraft lease), as against Rs 8,403 crore as on March 31, 2018.
The company has large repayments of Rs 1,700 crore due over December 2018 to March 2019, Rs 2,444.5 crore in FY2020 and Rs 2,167.9 crore in FY2021.
Jet defaulted in servicing its loan obligations on December 31 2018 and the 90-day window before its loans are dubbed non-performing assets (NPA) ends on 31 March 2019. The company is reeling under losses for the last four consecutive quarters with its shares losing over 60% in one year.
Edited by Aseem Thapliyal