Jet Airways assured Indian Oil Corporation of payment of dues, Indian Oil restored oil supply
Accordingly Indian Oil had stopped the fuel supply around noon today (April 5) but was restored at around 5 pm after the airline assured the oil firm of payment of dues. A major crisis was averted at the cash-starved Jet Airways after national oil marketing major Indian Oil Corporation (IOC) resumed fuel supply to the airline, which was halted earlier in the day due to the non-payments.
Earlier in the day, Jet Airways data-faced operational disruptions across major airports when IOC refused to refuel its planes without clearing the outstanding amount. A Jet spokesperson did not comment on the halting of fuel supply. Meanwhile a State Bank led consortium of banks will soon take over the management of the airline under a debt recast plan.
Moreover under the new management structure banks will own 50.1 per cent in Jet Airways by infusing an emergency fund of Rs 1,500 crore, which will then be converted into equity for a notional value of just Re 1 a share. The airline, however, has yet received the much-needed fund due to some procedural glitches, according the bankers.