Jet delays bank payments, puts ‘own planes’ in danger
MUMBAI: In the latest ominous turn of events in the Jet AirwaysNSE 1.74 % saga, the troubled airline has delayed repayments worth more than $18 million to global lenders including Citibank that financed its purchase of Boeing 777 planes.
Soon after it missed the due date in end March, Jet reached out to the MNC banks with the hope they would not pull the trigger.
These banks had lent on the back of guarantees from Export-Import (EXIM) Bank of the US which can be invoked if there is a default. Under the circumstances, a guarantee invocation could sound the death knell for Jet as the US institution would likely deregister and then repossess the planes.
