Jet Airways says Naresh Goyal pledged 26% shares to PNB on April 4; all you need to know

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Published: April 11, 2019 12:44:08 PM

Cash strapped Jet Airways on Thursday said its founder Naresh Goyal pledged 26 per cent of the company's shares to Punjab National Bank (PNB) on April 4, 2019.

naresh goyal jet airways, naresh goyal resigns, naresh goyal wife, naresh goyal news, jet airways news, jet airways share, jet airways naresh goyal, jet airways naresh goyal quits, jet airways naresh goyal newsOn Thursday, lenders to the ailing airline had extended the deadline for submission of expressions of interest (EoI) by two days to April 12.

Cash strapped Jet Airways on Thursday said its founder Naresh Goyal pledged 26 per cent of the company’s shares to Punjab National Bank (PNB) on April 4, 2019. “Security for existing or new borrowings taken by Jet Airways (India) Limited” has been stated as the reason behind the encumbrance, said the disclosure by the promoter to the stock exchanges. Naresh Goyal pledged 2,95,46,679 or 26.01 per cent of Jet Airways shares, the regulatory filing said.

On Thursday, lenders to the ailing airline had extended the deadline for submission of expressions of interest (EoI) by two days to April 12. It came amid worsening financial conditions of the airline including cutting of fuel supplies for the third time in the previous few days.

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“The qualified bidders will be expected to submit their respective binding bid(s) latest by April 30, 2019 subject to the terms set out under the bid document,” SBI Capital Markets said in a notice.

Earlier, Jet Airways chairman Naresh Goyal, his wife Anita Goyal and Etihad Airways nominee Kevin Knight stepped down from the board to allow for the lenders to take over in a bid to revive the airline by bringing in new investors.

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.

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