Indian Oil Corporation cuts fuel supply to debt-laden Jet Airways
New Delhi : Indian Oil Corporation (IOC) on Friday denied to provide fuel to debt-laden carrier Jet Airways from 12-noon due to non-payment of dues. On Thursday, the service was terminated for approximately one hour.
The Airline is left with only 36 operating planes after 15 more planes were grounded on Tuesday due to non-payment of rent for the aircraft.
Jet Airways has also allegedly missed the deadline of repaying a loan worth $109 million to financial services company HSBC Bank earlier this week, stated a report. In 2014, Jet Airways had obtained a loan amount totalling $140 million from the bank. The outstanding loan amount which was due on March 28, was part of a two-tranche facility, claimed sources.
The lenders, however, have opted an option to sell off Jet Airways stocks on April 6 to recover losses.
Jet Airways chairman Naresh Goyal and his wife Anita stepped down from the airline board, along with their two nominees and one from the Ethidad Airways PJSC on March 25.