MUMBAI, Apr 5: Indian Oil Corporation (IOC) Friday stopped fuel supply to the struggling carrier Jet Airways for non-payment.
The public sector oil marketing firm stopped supplying
fuel to the cash-starved carrier from 12 noon Friday, sources
said.
Response to a query sent to Jet Airways on this issue
was awaited.
Jet Airways, in which SBI-led consortium of lenders is
set to take management control under a debt-recast plan, has
drastically curtailed operations with a fleet of 26 planes.
On March 25, Jet Airways board had approved a
resolution plan formulated by SBI-led domestic lenders, under
which had agreed to infuse an emergency funding of Rs 1,500
crore into the airline, and convert the same into equity worth
50.1 percent for a notional value of just Re 1 each share.
The airline, however, has not yet received the
much-needed funds. (PTI)
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