Published On: Mon, Mar 25th, 2019

Jet Airways’ Chairman Naresh Goyal resigns, lenders to provide Rs 1,500 cr

Mumbai: Jet Airways promoter and founder Naresh Goyal on Monday resigned from the company’s board.

The resignation followed the airline board’s meeting in Mumbai

The resignation followed the airline board’s meeting in Mumbai on the day to decide on ways to procure interim funding as well as the future role of Goyal.

Sources said Goyal tendered his resignation at the emergency board meeting. “The main agenda, however, is to get interim funding,” said a source.

It was expected that after the meeting the State Bank of India, which is the lead lender of the consortium of bankers that lent to the airline, will infuse more funds.

According to industry estimates, Jet’s total debt stood at Rs 8,000 crore. The company urgently needed funding to maintain whatever was left of its market shares, even as the airline pilots and crew were said to be approaching other airlines for employment.

The airline’s pilots along with engineers and other highly critical segment of employees have not been paid salaries from January 1, sources said, adding only 12.5 per cent of December pay was given.

Meanwhile, Jet Airways on Monday said that it will receive an “immediate funding support” of up to Rs 1,500 crore by lenders for operational requirements.

The financially-struggling airline also announced the constitution of an Interim Management Committee “at the instructions of the lenders to manage and monitor the daily operations and cashflow of the company”.

“Immediate Funding support of up to Rs 1,500 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,” it said.

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