Jet Airways has said it has defaulted on the External Commercial Borrowing, availed for working capital purposes, falling due on March 28, due to temporary liquidity constraints.
The airline had earlier defaulted on a tranche payment of $31 million to HSBC that was due on March 11.
The financially-troubled carrier owes $140 million in total to HSBC. It was supposed to pay off this amount by March 28.
In March 2014, Jet had availed of a $140-million loan from HSBC as External Commercial Borrowing for five years. According to the agreement, the airline had to repay the dues in two tranches. Tranche A worth $31 million was due on March 11 and tranche B worth $109 million was due on March 28.
