Indian Oil again stops fuel supply to Jet Airways due to non-payment of outstanding bills
The Indian Oil Corporation Ltd (IOCL) on Wednesday again stopped fuel supply to crash-strapped Jet Airways across India due to non-payment of outstanding bills. The company had stopped fuel supply on Friday as well, but later in the day it resumed the supply.
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 1,500crore 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.