Idfc, Indian Bank, Yes Bank Put Spicejet Loans In High: risk category- sources (updated)

Jet Airways (India)

08/08/2022 11:08

(Adds details, share price movement)
    By Nupur Anand and Aditi Shah
    MUMBAI, Aug 8 (Reuters) - Private lenders IDFC First Bank
 IDFB.NS  and Yes Bank  YESB.NS  and state-owned Indian Bank
 INBA.NS  have put their loans to SpiceJet Ltd in the high-risk
category, the latest setback for the airline, people with
knowledge of the matter said.
    The lenders are concerned about SpiceJet's  SPJT.NS  cash
flows and have held discussions seeking assurances from the
Indian budget carrier as it is behind on payments to some
aircraft lessors, the sources said. 
    SpiceJet's shares fell as much as 4.8% on the news.
    The discussion comes as SpiceJet's approved fleet was halved
for eight weeks this summer by regulators due to safety snags
and as lessors have filed formal applications to de-register
four planes. The two moves have raised concerns the airline's
tight liquidity could be further strapped amid high fuel prices
and rising competition from new entrants like Akasa Air.
 urn:newsml:reuters.com:*:nL4N2Z90ZZ  urn:newsml:reuters.com:*:nL4N2ZE3XC
    One of the sources said "there is no positive news about
SpiceJet" after earnings had been under pressure for several
years due to the pandemic. The airline's outlook does not look
encouraging, the source said.     
    SpiceJet said that no bank has put its account on high
alert. 
    "Loans are being serviced as per the agreed terms. We are
not aware of any bank having any 'concern' nor has there been
any communication regarding the same to SpiceJet," a company
spokesperson told Reuters in an email.
    The banks did not respond to Reuters' requests seeking
comment on the current loan size, concerns with SpiceJet's
financial position and if it had asked for more funds.
    SpiceJet Chairman Ajay Singh and his wife, who control 59%
of the airline, as of June 30 had pledged shares representing a
26% stake, mostly to these three lenders for credit facilities
for company use, according to a regulatory filing.

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India’s SpiceJet airline faces multiple technical malfunctions  
 https://tmsnrt.rs/3Sbz1Rh
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 (Reporting by Nupur Anand in Mumbai and Aditi Shah in New
Delhi; Additional reporting by Jamie Freed in Sydney; Editing by
Miyoung Kim, Louise Heavens and Raju Gopalakrishnan)
 ((Nupur.Anand@thomsonreuters.com; +9122 68414388;))