Published: Tue, March 26, 2019
Finance | By Kristine Clayton

Naresh Goyal resigns from Jet Airways following emergency board meeting

Naresh Goyal resigns from Jet Airways following emergency board meeting

The founder of cash-strapped Indian airline Jet Airways has stepped down as chairman of the company. But, if you get a cancellation message with more than three days left for the flight, Jet Airways has opened up a separate website to get you accommodated on another flight if possible.

"Immediate Funding support of upto 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", the company said.

Naresh Goyal has quit as the chairman of Jet Airways (India) Ltd, stepping down from the board of the airline he founded two-and-a-half decades ago, as part of a plan that involves lenders taking control of the carrier.

Former SBI managing director and ex-Jet Airways director Srinivasan Vishvanathan might be invited to join the top leadership of the company, the report added.

Last week, Reuters reported, citing two people in the know, that the central government had asked state-run banks to rescue the airline without pushing it into bankruptcy as Prime Minister Narendra Modi sought to avert thousands of job losses weeks before a general election. According to Reserve Bank of India (RBI) regulations, lenders must resolve cases pertaining to defaulting companies such as Jet Airways within 180 days of their first default.

The banks will issue a loan of 15 billion rupees ($218 million) to meet Jet's obligations and form an interim management committee to oversee operations, it added.

Bidding process to be initiated by lenders for sale to new investor (s), the process expected to be completed in June quarter as per the resolution plan.

Goyal's exit as chairman brings an end to an era during which he built Jet into one of India's leading airlines with more than 120 planes, enviable landing slots and flights to places such as Hong Kong, Dubai, Paris and London.

Goyal and his wife will step down from Jet Airways' board under a resolution plan piloted by its lenders. "By launching a truly world class airline, Naresh and Anita Goyal made India proud", Singh said in a statement.

Singh said this was also a wake-up call for Indian policy makers.

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