Jet Airways has 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 is supposed to pay off this amount by the end of the month but analysts said unless the company gets a fresh fund infusion quickly it may default again.
In March 2014, Jet had availed of a $140-million loan from HSBC as External Commercial Borrowing (ECB) 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 is due on March 28.
