Naresh Goyal resignation: Banks take over Jet Airways, new investor coming in

Daniel Fowler
March 25, 2019

Jet Airways Ltd Chairman Naresh Goyal and his wife Anita Goyal have quit the board of the cash-strapped airline, the airline said on Monday as it closes in on a rescue deal led by state-run banks.

As per ICRA's report, the airline has large repayments due in March to the tune of Rs 1,700 crores and further Rs 2,445 crore due in FY20 and Rs 2,168 crore due in FY21. Last week, the State Bank of India, which is leading the bank-led resolution plan for Jet, had asked them as well as two more directors to step down from their positions on the company's board.

Jet's moneylenders consortium may invoke the complete 51 per cent stake of Naresh Goyal within the airline, and begin searching for a new buyer within the coming weeks.

According to the BSE statement, the decision taken at the board meeting included resignation of Naresh Goyal, his wife Anita Goyal, and Etihad Airways nominee Kevin Knight from the Jet Airways board.

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The company said the lenders will infuse up to Rs 1,500 crore in the airline debt instruments.

In a stock market filing which also announced the resignation, the company said that banks would lend around $210m to keep it afloat until it starts to sell shares to new investors.

Jet has survived a near-death experience once before; in 2013, Abu Dhabi's Etihad Airways injected $600 million of capital for a 24 per cent stake in the airline, three London Heathrow slots and a majority share in Jet's frequent flyer programme.

Saddled with debt, Jet has postponed payments to banks, pilots and lessors.

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