Jet Airways founder Naresh Goyal, wife to resign from board
After weeks of speculations and uncertainties over the future course of Jet Airways, which has grounded over 80 planes due to financial woes, the airline's board on Monday approved a resolution plan formulated by SBI-led domestic lenders.
Naresh Goyal, his wife Anita and Etihad Airways PJSC's nominee director Kevin Knight would step down from the board. Gulf carrier Etihad holds 24 per cent stake in Jet Airways.
According to the filing, two nominee directors of the lenders would be inducted. Naresh Goyal would also cease to be the chairman, the filing said.
also read
Further, an immediate funding of up to Rs 1,500 crore would be provided to the cash-strapped airline by "way of issue of appropriate debt instrument", the filing said.
Appropriate security would be created over the company's assets for securing the existing facilities extended by the lenders to the airline, which has a debt burden of more than Rs 8,000 crore.
As many as 11.4 crore equity shares would be issued to the lenders upon conversion of debt.
The board also approved "constitution of an Interim Management Committee to manage and monitor the daily operations and cash flow of the company," the filing said.
Shares of the airline zoomed 12.69 per cent to close at Rs 254.50 on the BSE.
Jet Airways, which has been operating for more than 25 years, is grappling with financial crunch and is also looking to raise fresh funds.
The airline has suspended operations on at least 14 international routes till end-April and over 80 planes are on the ground. As many as 54 aircraft have been grounded due to non-payment of lease rentals.
