Jet Airways crisis: Naresh Goyal pledged 5% stake to SBICAP on April 12; all you need to know

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Published: April 15, 2019 7:06:28 PM

Jet Airways founder Naresh Goyal has pledged 5 per cent stake in the ailing airline to SBICap trustee company on April 12 as security for loans, according to a regulatory filing.

A total of 58,95,704 shares were pledged by Goyal, which amount to 5.19 per cent of the share capital.

Jet Airways founder Naresh Goyal has pledged 5 per cent stake in the ailing airline to SBICap trustee company on April 12 as security for loans, according to a regulatory filing. Last on April 4, he had pledged 26 per cent of the shares to Punjab National Bank (PNB). A total of 58,95,704 shares were pledged by Goyal, which amount to 5.19 per cent of the share capital.

The pledge was created on April 4 as “security for existing/ new borrowings taken by Jet Airways (India) Ltd,” the filing to the BSE said. Last month, Naresh Goyal and his wife Anita Goyal quit the board of cash-strapped carrier as part of a debt resolution plan. Goyal had founded the company more than 25 years ago.

Also read: Here’s why Bata India was fined for Rs 3 paper carry bag

Lenders led by State Bank of India (SBI) are now initiating a bidding process for the sale of shares to a new investor or promoter. The process is expected to be completed in the June quarter. The board has already approved the issue of 11.4 crore equity shares of the airline to lenders upon conversion of outstanding debt, which would be subject to relevant approvals and laws.

As a result stake of the Goyals will come down to less than half the existing 50.1 per cent. For the last three months, the airline has not paid salaries to its employees including pilots, and other senior executives.

Meanwhile, the National Aviator’s Guild (NAG), Jet’s pilots body, on Monday asked Prime Minister Narendra Modi to help save 20,000 jobs. The pilots also appealed to the State Bank of India (SBI) to release Rs 1,500 crore proposed to be infused in the beleaguered airline as a part of its debt-restructuring plan last month.

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