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  Business   Companies  25 Mar 2019  Jet Airways founder Naresh Goyal steps down as chairman

Jet Airways founder Naresh Goyal steps down as chairman

REUTERS
Published : Mar 25, 2019, 3:37 pm IST
Updated : Mar 25, 2019, 4:42 pm IST

Along with Goyal his spouse Anita Goyal also stepped down from the board

Jet Airways burden with more than USD 1 bn of debt, It has deferred payments to banks, suppliers, pilots and lessors.
 Jet Airways burden with more than USD 1 bn of debt, It has deferred payments to banks, suppliers, pilots and lessors.

Mumbai: Jet Airways’ Chairman Naresh Goyal and his wife will step down from the airline’s board, Reuters reported Monday, citing television channels, as the cash-strapped Indian carrier closes in on a rescue deal led by state-run banks.

Goyal’s stake will be cut to 25.5 per cent from the current 51 per cent, while Etihad Airways’ stake in the debt-laden carrier will also be halved to 12 per cent to make room for the banks to take a controlling stake of 50.5 per cent in the airline, one of the TV channels, ET Now, reported, citing unnamed sources.

The debt-laden Jet Airways also said it will get up to Rs 1,500 crore from lenders in form of debt instruments.

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

The government has asked state-run banks, led by SBI, to rescue Jet without pushing it into bankruptcy, two people within the Indian government have told Reuters that Prime Minister Narendra Modi seeks to avert thousands of job losses weeks before a general election.

The reports of Goyal’s departure led to a rally in Jet’s shares of more than 12 per cent.

Tags: jet airways, naresh goyal, anita goyal, resignation
Location: India, Maharashtra, Mumbai (Bombay)