Naresh Goyal (File photo)

NEW DELHI: Jet Airways ’ founder Naresh Goyal and his wife Anita Goyal on Monday resigned from the board of the struggling-to-survive airline, paving the way for lenders to immediately pump in Rs 1,500 crore to save it from an otherwise imminent collapse. Goyal also ceases to be airline chairman with immediate effect. With these two preconditions met, lenders have now initiated the process of converting dome of their debt into equity also. An interim committee will be set up to run the airline now.

As this news came, Jet shares surged 12.7% at BSE to close at Rs 254.5.

“Naresh Goyal and Anita Goyal and one nominee of Etihad Airways (which has 24% stake in Jet) to step down from the Board. Additionally, Naresh Goyal to also cease to be the chairman of the company,” Jet Airways said in a regulatory filing with the BSE after a board meeting in Mumbai. Naresh Goyal did not attend the meeting and was in London.

“Conversion of Rs 1 of Lenders’ debt into 11.4 crore equity shares.. Constitution of an interim management committee at the instructions of the lenders to manage and monitor the daily operations and cash flow of the company.. Immediate Funding support of upto Rs 1500 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,” the filing added. Lenders expect to complete bidding process for sale/issue of shares to new investors in the June quarter.

Goyals’ exit comes after the founder failed to either bring in an investor or pump his own funds to save the airline. Banks have an exposure of almost Rs 9,000 crore to Jet and they waited long enough for Goyal to come up with something.

“Jet’s total debt is in the range of Rs 8,000-9,000 crore. Plus there are payables of Rs 15,000 crore and estimated advance ticket sales of Rs 3,500 crore. Banks should be ready to pump in much more than the the emergency funding of Rs 1,000-2,000 crore,” said an aviation industry insider.

While the future of Jet will eventually be decided by what stand the next Central government that will assume office in about 2.5 months, the plan as of now is that banks get together to ensure the airline does not shut operations. “The feeling among bankers is that if Jet shuts down, they lose all the money. On the other hand if it somehow survives, there is a chance some other player — preferably an Indian giant or consortium of desi players — may take over Jet in a few months. At that time banks will offload some of their stake to the new owner,” said sources. The preferred name everyone is taking is Tata Group.

Now with Goyal out of Jet, lenders may resume talks with Tata Group to take over Jet.

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In Video: Naresh Goyal, wife Anita resign from Jet Airways board