Buried under a debt of more than $1 billion, Jet Airways is struggling to make payments to banks, suppliers, pilots and lessors. This has led to the grounding of at least 40 planes.
New Delhi: Jet Airways chairman Naresh Goyal stepped down from the board of directors on Monday. His wife Anita Goyal was also forced to step down.
Moreover, the airline will also receive immediate funding of up to Rs 1,500 crore by lenders, confirmed an official statement.
On February 28, Goyal agreed to step down as the lenders gear up to acquire a majority stake in the airline under a bailout plan.
While the couple, who founded the airline 25 years ago, expected to leave the board, Chief Executive Vinay Dube is likely to stay back.
Buried under a debt of more than $1 billion, Jet Airways is struggling to make payments to banks, suppliers, pilots and lessors. This has led to the grounding of at least 40 planes.
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Goyal decided to step down after a meeting with Etihad Airways Chief Executive Officer Tony Douglas to resolve various issues.
The Gulf-based carrier holds 24% stake in the Mumbai-based full-service airline, founded by Goyal 25 years ago.
State Bank of India is the lead lender of a consortium that has extended loans to Jet Airways, which has been grappling with financial woes and is looking to rejig debt as well as raise funds.
On February 14, Jet Airways' board had approved a Bank-Led Provisional Resolution Plan (BLPRP), whereby lenders would become the largest shareholders in the airline.
Its shareholders have also approved the conversion of loan into shares and other proposals during the extraordinary general meeting on February 21.
With PTI inputs
Last Updated Mar 25, 2019, 4:35 PM IST