MUMBAI: Government-owned State Bank of India (SBINSE 0.45 %) and Punjab National Bank (PNBNSE -0.14 %) have agreed to provide Rs 500 crore emergency funding for Jet AirwaysNSE 1.00 %, subject to others in the consortium of lenders not objecting, said people with knowledge of the matter.
This money will allow the airline to continue operations until the lenders determine the best way of restructuring the company’s debt of more than Rs 8,000 crore.
“Only SBI and PNB have agreed to step in and provide the loans,” said a person with direct knowledge of the matter. “None of the other lenders are willing to lend more.” The fresh debt is proposed to be ranked at higher seniority, which means it will be given first preference in the event of loan recovery, this person said.
