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Jet Airways stock falls over 4% after airline offers revenue from ticket sales as security against debt

The airline which defaulted on loan repayments in December, has proposed to its banks that revenue from ticket sales be securitised against outstanding debt, according to a media report.  

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Jet Airways stock falls over 4% after airline offers revenue from ticket sales as security against debt

The Jet Airways stock fell over 4% in trade today after the airline proposed to its lenders that revenue from ticket sales be securitised against outstanding debt. The small cap stock fell 4.31% to Rs 236.20 compared to the previous close of 246.85 level on the BSE.

The stock has been falling for the last three days and is down 13.73% during the period. The stock has lost 71.84% during the last one year.

The stock is trading below its 50-day and 200-day moving averages of 282.15 and 277.08, respectively.

The airline which defaulted on loan repayments in December, has proposed to its banks that revenue from ticket sales be securitised against outstanding debt, reported The Economic Times.

The full service carrier, which has been grappling with financial woes for some time now, has been making delayed salary payments to its staff.

"Payment of interest and principal installment due to the consortium of Indian Banks (led by State Bank of India) on December 31, 2018 has been delayed due to temporary cashflow mismatch," the airline said in a filing to the stock exchanges.

Ratings agency Icra on Wednesday downgraded its ratings on the airline's long-term and short-term fund facilities.

Meanwhile, the Sensex and Nifty were engaged on seesaw trade today. The Sensex was trading 52 points higher at 35,566. The Nifty was up 0.067% at 10,681.

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