Insta
Naresh Goyal at a press conference in New Delhi. (Hemant Chawla/The India Today Group/GettyImages)
Founder chairman of the troubled airline Jet Airways Naresh Goyal and his wife Anita Goyal have resigned from the company’s board, ending speculation over the future role to be played by the Goyal family in the management of the carrier, reports Economic Times (ET).
Naresh Goyal has also resigned from his position as the chairman of the company. Meanwhile, lenders to Jet, led by State Bank of India (SBI) have taken over the company’s management and board.
The lenders are expected to begin an auction process soon to find a new strategic investor to infuse much-needed funds into the financially-stressed airline.
Jet Airways based out Mumbai has been saddled with over Rs 8,620 crore of debt as on 30 June 2018. It also reported its second consecutive quarterly loss of over Rs 1,300 crore in 2018.
Efforts by Goyal to find an investor to improve cash-flow reached nowhere as potential and existing investors like Etihad wanted him to give up his control of the airline.
In January the company defaulted on its loan repayments to a consortium of banks, led by State Bank of India. To avoid Jet’s admissions into the bankruptcy court which would have eroded its value, bankers have now appointed an “interim management committee” to manage the daily operations and cash flow of the airline.
Bankers To Become Managers
According to the restructured ownership plan, banks will own nearly half of the airline and Goyal’s shareholding will reduce to half of his earlier holding of 50.1 per cent. The lenders are also expected to further infuse Rs 1,500 crore into the company via debt instruments “against security of its assets.”
Support Swarajya's 50 Ground Reports Project & Sponsor A Story
Every general election Swarajya does a 50 ground reports project.
Aimed only at serious readers and those who appreciate the nuances of political undercurrents, the project provides a sense of India's electoral landscape. As you know, these reports are produced after considerable investment of travel, time and effort on the ground.
This time too we've kicked off the project in style and have covered over 30 constituencies already. If you're someone who appreciates such work and have enjoyed our coverage please consider sponsoring a ground report for just Rs 2999 to Rs 19,999 - it goes a long way in helping us produce more quality reportage.
You can also back this project by becoming a subscriber for as little as Rs 999 - so do click on this links and choose a plan that suits you and back us.
Click below to contribute.
Latest