Naresh Goyal Pledges Jet Airways Shares Worth Rs 800 Crore With PNB As Lenders Search For Investors

Founder chairman of Jet Airways (India) Ltd has pledged half his shares in the debt-ridden airline with Punjab National Bank as the company continues to battle a crippling financial crisis, reports Bloomberg Quint.

The pledged shares, estimated to value Rs 800 crore, amount to a 26 per cent holding of the company’s stock, and will act as security for current and future loans.

It is possible that Goyal will submit initial bids for stake in the company today (11 March), according to PTI.

As per previous reports, banks were believed to be looking to pump in Rs 1,500 crore into the struggling airline against promoter shares by a conversion of debt into equity, allowing the to take control of the company.

Moreover, Goyal has also given a non-disposal undertaking to PNB, which disallows him from selling his 51 per cent interest in the company.

The total debt of Jet Airways is somewhere around Rs 8,500 crore, with the airlines having a hard time paying its lessors, employees and creditors. Currently, only 26 planes, or one fifth of its fleet, are being operated by the airline as most of the rest remain grounded.

The company’s creditors are looking for fresh investors to pick up a stake in the airline, and have invited expressions of interest to that end.

Also Read: No Show For Jet Airways On Day 1 Of Bidding: No Expression Of Interests Received From Potential Investors