Jet Airways chairman Naresh Goyal, wife resign amid debt crisis

26 March, 2019, 06:55 | Author: Erin Carter
  • Jet Airways Shares Rally Further Zoom Nearly 9 Per Cent as Naresh Goyal Steps Down

The board decisions come as the full-service airline struggles to repay its debt of almost Rs 8,000 crore to banks led by State Bank of India. Goyal's wife Anita Goyal and Kevin Knight, a nominee of Etihad Airways, have also resigned.

The lenders will nominate two directors to the Jet board and will shortly initiate an auction process to find a new strategic investor for the company. The full service carrier has a debt burden of more than Rs 8,200 crore and needs to make repayments worth up to Rs 1,700 crore by March end.

It has formed an Interim Management Committee (IMC) to oversee the financial and operational performance of the airline under the supervision of the board of directors with the support of McKinsey & Co.

Naresh Goyal will cease to be the chairman of the company, Jet Airways said.

State Bank of India has reportedly agreed to infuse ₹15 billion into the private carrier.

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Jet Airways share price has been gaining for the last two days and has risen 6.93% during the period. "The option is open for anyone including Naresh Goyal and Etihad to bid for the stake", Kumar said. It has deferred payments to banks, suppliers, pilots and lessors for months of which lessors have constrained the airline to ground as many as 40 planes.

Naresh Goyal, Chairman of Jet Airways speaks during a news conference in Mumbai November 29, 2017. Shares of Jet Airways had jumped over 15% on the National Stock Exchange after the news reports, and closed the day at Rs 261 per share.

The airline has not paid salaries to a section of its employees, including pilots.

Jet Airways was not immediately available for comment when contacted by Reuters.

According to reports, Etihad's stakes in the company will be halved from 24 per cent to 12 per cent while Goyal's stake will be reduced to 25.5 per cent from the existing 51 per cent.

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