Jet Airways Chairman Naresh Goyal will exit from the board, following which his stakes would be reduced in the cash-strapped airline. According to Jet Airways, the banks, led by State Bank of India (SBI), would convert their debt into equity and take a controlling stake in the airline for a token sum of Rs 1.
Jet Airways Chairman Naresh Goyal will exit from the board, following which his stakes would be reduced in the cash-strapped airline. According to Jet Airways, the banks, led by State Bank of India (SBI), would convert their debt into equity and take a controlling stake in the airline for a token sum of Rs 1.
The banks would also give the airline a fresh loan Rs 1,500 crore under a resolution plan to meet payments and restore normal operations and the lenders will form an interim management committee to manage the airline, Jet said.
Below we have listed 10 developments that had happened so far.
1. Besides Naresh Goyal, his wife Anita Goyal would step down from the board of the ailing airline.
2. After weeks of speculations and uncertainties over the future course of Jet Airways, which has grounded over 80 planes due to financial woes, the airline's board Monday approved a resolution plan formulated by SBI-led domestic lenders.
3. Naresh Goyal, his wife Anita Goyal and Etihad Airways PJSC's nominee director Kevin Knight would step down from the board.
4. According to the filing, two nominee directors of the lenders would be inducted. Further, an immediate funding of up to Rs 1,500 crore would be provided to the cash-strapped airline by "way of issue of appropriate debt instrument", the filing said.
5. Appropriate security would be created over the company's assets for securing the existing facilities extended by the lenders to the airline, which has a debt burden of more than Rs 8,000 crore.
6. As many as 11.4 crore equity shares would be issued to the lenders upon conversion of debt.
7. The board also approved "constitution of an Interim Management Committee to manage and monitor the daily operations and cash flow of the company," the filing said.
8. Abu Dhabi-based Etihad is a strategic partner with 24 per cent stake in Jet Airways.
9. Naresh Goyal would also cease to be the chairman, the filing said.
10. Shares of the airline zoomed 12.69 per cent to close at Rs 254.50 on the BSE.
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 "Jet Airways chairman Naresh Goyal steps down, banks take control: 10 updates")
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