TIA WEB DESK
Founder chairman of the troubled airline Jet Airways Naresh Goyal and his wife Anita Goyal have resigned from the company’s board, ending speculation over the future role to be played by the Goyal family in the management of the cash-strapped airline.
Naresh Goyal has also resigned from his position as the chairman of the company. Meanwhile, lenders to Jet, led by State Bank of India (SBI) have taken over the company’s management and board.
Apart from the Goyals, one nominee of Etihad Airways PJSC, Kevin Knight has also stepped down from the board, Jet Airways said in a notification to the BSE after its board meeting today. Two nominee directors representing lenders have been inducted into the board.
The board also approved the issue of 11.4 crore equity shares to the lenders upon conversion of Re 1 of the outstanding debt. Lenders will infuse up to Rs 1,500 crore via debt instruments.
The board also approved the constitution of an Interim Management Committee to manage and monitor the daily operations and cash flow of the company.
The lenders are expected to begin an auction process soon to find a new strategic investor to infuse much-needed funds into the financially-stressed airline.
Saddled with a debt of over $1 billion of debt, Jet Airways has been struggling to stay afloat. It has delayed payments to banks, suppliers, pilots and lessors – some of which have forced the airline to ground as many as 40 planes.