Even as Jet Airways continues to roil under financial stress, Naresh Goyal and wife Anita Goyal have finally stepped down from the board, paving the way forward for recovery of the airline with infusion of fresh funds. Shares of private sector airline Jet Airways extended rally in the afternoon trade on Monday after media reports said that Naresh Goyal has stepped down from the board. Jet Airways share price jumped 14% to hit the day’s high at Rs 259.
Naresh Goyal & Anita Goyal have agreed to step down from the board, Jet Airways confirmed in a statement to the exchanges. “Two nominees of promoter viz. Mr Naresh Goyal and Mrs Anita Goyal, and one nominee of Etihad Airways PJSC to step down from the Board. Additionally, Mr. Naresh Goyal to also cease to be the Chairman of the Company” said the company. Jet Airways added that it will receive immediate Funding support of up to 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.
According to ET Now, Etihad Airways stake will reduce to 12% from 24% currently. Naresh Goyal’s stake will come down to 25.5% from 51% currently. The total stake of lenders stands at 50.5%, the channel reported citing sources.
Detailing its final resolution plan, Jet Airways said that it will issue 11.4 crore equity shares of the Company to the Lenders upon conversion Rs 1 of the outstanding debt. Further, there will be a security cover over the assets for securing the existing and additional funding of the lenders. Saddled with debt of more than $1 billion, Jet Airways owes money to banks, suppliers, pilots and lessors – several of whom have started terminating leases with the carrier. Te fresh infusion of funds could come as a welcome relief to the troubled carrier.