The majority shareholder – SBI to infuse INR 1500 crore immediately
In a bid to find a sustainable solution of Jet Airways fund crisis, Naresh Goyal, Chairman of Jet Airways, decided to hang his boots in the board meeting on Monday and the board accepted the proposal of converting lender’s debt into equity. With this decision, the consortium of Indian lenders, led by State Bank of India (SBI), will become the majority shareholders of Jet Airways.
As part of the Resolution Plan, the lenders will provide immediate interim funding support of INR 1500 crore to Jet Airways. The Company will also engage with payment intermediaries for the release of trapped cash. The airline will leverage the funding to partly clear pending dues towards lessors, vendors, creditors and employees in a phased manner.
The move will see Jet Airways re-deploy several of its grounded aircraft back into its network, helping renew many of the routes it had temporarily suspended, which will help restore normalcy of operations, aiding the airline’s long term transformation to continue expansion and to regain its position as a global player.
The outgoing Chairman Goyal thanked all stakeholders for being a pillar of strength in the journey of the airline over almost three decades. He profusely thanked the Board, the lenders, partners and each and every employee of the Jet Airways family and hoped that they would continue to work tirelessly to take the airline back to its days of glory.
The new circumstances will see the resignations of its Promoters Naresh Goyal, Anita Goyal, and Kevin Knight, nominee director of Etihad Airways from their positions on the Company’s Board. However, the two nominees of the Promoter and one nominee of Etihad Airways will continue on the Board.