Jet Airways Chairman Naresh Goyal might resign today. According to media reports, the board wanted Naresh Goyal, Wife Anita Goyal, Whole Time member Gaurang Shetty and Naseem Zaidi to quit, in return of which it would agree to infuse Rs 1500 crore as emergency funding.
Jet Airways Chairman Naresh Goyal might resign today. According to media reports, the board wanted Naresh Goyal, Wife Anita Goyal, Whole Time member Gaurang Shetty and Naseem Zaidi to quit, in return of which it would agree to infuse Rs 1500 crore as emergency funding.
Rs 1500 crore would be infused by lenders consortium lead by the State Bank of India, earlier smaller PSU banks in consortium were unwilling but now they have agreed to pour in money. The airline might get the emergency funds within a week.
Meanwhile, a senior government official Monday told PTI that a "good outcome" from the negotiations between the creditors and the company would be better than moving for proceedings under the insolvency law.
"I think creditors and the debtor are in discussion. That is the best process," Corporate Affairs Secretary Injeti Srinivas said.
He was responding to a query on whether Jet Airways is a fit case to be referred under the Insolvency and Bankruptcy Code (IBC).
"If there is a good outcome from the negotiations between the creditors and the corporate debtor, then that is better than dragging into insolvency... but if that (insolvency) is only option left at that stage, then bankers will take a call," he noted.
The cash-strapped airline, which has been operating for over 25 years, is looking to restructure its debt, estimated to be more than Rs 8,000 crore, as well as raise fresh funds.
Lenders of the crisis-hit Jet Airways are likely to acquire a substantial stake in the carrier till a new promoter is roped in, sources said last week.
Noting that the IBC is the last resort, Srinivas said that if there is inherent capacity for a company to bounce back, then it is best for members of the company and the creditors to try and see how it can be resolved.
"If there is no agreement between the creditors and shareholders, then you will have to look at other possibilities, including that of the IBC," he said.
He was replying to a query regarding Jet Airways on the sidelines of a conference organised by industry body CII.
In afternoon trade, shares of Jet Airways rose nearly three per cent to Rs 232.35 on the BSE.
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 "Jet Airways crisis: Naresh Goyal, wife Anita likely to resign today")
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