Jet Airways defaults on $140-mn loan; cites temporary liquidity constraints

The first repayment tranche of $31 million was due on March 11 and the second instalment of $109 million due today

Jet Airways has defaulted in repaying $140-million loan to HSBC Bank. The airline informed stock exchanges that the payment of external commercial borrowings due on Thursday was delayed because of temporary liquidity constraints and it was engaged with the bank regarding the same.

The first tranche of $31 million was due on March 11, while the second instalment of $109 million was due on Thursday. 

The airline has failed to pay both the tranches.

The default takes place three days after a change