JET AIRWAYS chairman Naresh Goyal will step down from the board and reduce his stake in the cash-strapped Indian carrier, the company said today (25) as it closes in on a rescue deal led by state-run banks.
The banks, led by State Bank of India (SBI), will convert their debt into equity and take a controlling stake in the airline for a token sum of Rs 1, Jet said in a statement to the stock exchanges after its board met earlier today (25).
The banks will also give the airline a fresh loan of £164 million ($217.71m) to meet payments and restore normal operations and the lenders will form an interim management committee to manage the airline, Jet said.
Saddled with debt of more than £755.65m ($1 billion), Jet owes money to banks, suppliers, pilots and lessors - several of whom have started terminating leases with the carrier.
In its statement, Jet said the banks will initiate a bidding process to sell their stake in the airline to a new investor and that the process is expected to be complete by end-June.
Reports of Goyal's departure led to a rally in Jet's shares, which ended the day 12.4 per cent higher.
(Reuters)
Crew members at Gapstow Bridge in Central Park
Air India crew strolled the busy sidewalks of Times Square
Crew members in front of iconic yellow cabs in New York
From desks to dreams: A journey of girls’ empowerment