Jet Airways share price surges 17% on report that Naresh Goyal may step down from board

By: | Updated: January 14, 2019 5:03 PM

Shares of private sector carrier jumped in trade on Monday, after media reports said that resolution plan is likely to be finalised after lenders’ meet this week.

Jet Airways,  State Bank of India, Naresh Goyal, Jet Airways,  Etihad AirwaysEarlier this month the debt-struck airline had defaulted on payments of debt to a consortium of banks.

Shares of private sector carrier jumped in trade on Monday, after media reports said that resolution plan is likely to be finalised after lenders’ meet this week. Jet Airways share price zoomed by more than 17.15 per cent to Rs 297 on BSE. Promoter Naresh Goyal will step down from the board and give up majority control in the firm, CNBC TV18 reported citing unidentified sources.

Naresh Goyal’s stake will come down between 20-25 per cent post restructuring. The voting rights will be capped at 10 per cent. According to the report, Naresh Goyal’s son Nivaan Goyal may replace him on the board. Further, the banks may raise equity capital as part of the restructuring plan, CNBC TV18 added, citing sources.

Meanwhile, BTVI television channel reported earlier today that Etihad Airways PJSC has agreed to raise its stake in Jet Airways to 49 percent as chairman Naresh Goyal may give up majority control of the carrier.

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Earlier this month the debt-struck airline had defaulted on payments of debt to a consortium of banks.

On January 10, Bloomberg had reported that Jet Airways India is running out of money, forcing it to weigh re-starting bailout talks with Tata Group, the nation’s biggest conglomerate, according to people with knowledge of the matter.

While its founder and Chairman Naresh Goyal has been discussing a deal with Etihad Airways PJSC, talks with the foreign partner stalled over the latter’s demand that Goyal step aside from his management role, Bloomberg had reported citing unidentified sources.

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