Over 2.5 months ago, on CNBC, I said Mr. Naresh Goyal must decide, whether Jet Airways lives without him or dies with him.
After stalling all this time, and taking the airline to the brink of closure, he appears to have realised he has finally run out of options. In a filing with the stock exchange, the company announced Mr. Naresh Goyal and his wife Anita Goyal have stepped down from the board of the airline. Goyal also ceases to be Chairman. In addition to the Goyals, Kevin Knight, a nominee of stakeholder Etihad Airways PJSC also steps down.
The lenders led by the State Bank of India (SBI) will immediately infuse upto ₹1,500 crore (₹15 billion) via debt instruments. The board of directors also approved conversion of ₹1 of the lenders’ debt into 114 million equity shares.
An Interim Management Committee is being constituted at the instructions of the banks, to manage and monitor the daily operations and cashflow of the Company, and a bidding process for new investor(s) will be initiated by the banks for sale/issue of shares to new investor(s). The banks are expecting to be complete the process by the June quarter.
The Goyals remain in a “minority active position” as they will hold 25% of the company stock, and may exert an active influence on the decision making.