Jet Airways founder Naresh Goyal to quit as chairman today

Jet Airways founder Naresh Goyal to quit as chairman today

The SBI-led consortium of lenders is working on a resolution plan for the cash-strapped Jet Airways for the last five months. Goyal's wife Anita Goyal and Kevin Knight, a nominee of Etihad Airways, have also resigned.

After weeks of speculations and uncertainties over the future course of Jet Airways, which has grounded over 80 planes due to financial woes, approved constitution of an Interim Management Committee to manage and monitor the daily operations and cash flow of the company.

"Immediate Funding support of up to Rs 1,500 crore by lenders by way of issue of appropriate debt instrument against security of its assets which will restore normalcy to Company's level of operations", it said.

Saddled with debt of more than US$1 billion, Jet owes money to banks, suppliers, pilots and lessors - several of whom have started terminating leases with the carrier.

It is likely that the lenders will take over more than 50 per cent of the airline's stake.


Bids to buy a stake in Jet will open on April 9 and close on April 30 with the expectation that a new investor will be in place by May 31, SBI Chairman Rajnish Kumar told CNBC-TV18, adding that even Goyal would be eligible to bid for it. There were delayed payments to vendors, banks, pilots and lessors, which resulted in the airline having to ground almost 40 of its aircraft.

Shares of Jet Airways jumped over 15 percent on the BSE to end at Rs 260.

Abu Dhabi's Eithad Airways, which owns a 24 per cent stake in Jet Airways, is however reticent to provide interim funding of about 7 billion rupees (USD 99 million) to Jet Airways, the source said.

Jet Airways was not immediately available for comment when contacted by Reuters. It also needs to pay months' worth of salaries to pilots and other senior employees.

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