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No sacrifice too big to safeguard interest of Jet Airways: Naresh Goyal on stepping down
Naresh Goyal, who is quitting as chairman of Jet Airways under a debt resolution plan, Monday said no sacrifice is too big for him to safeguard the interest of the airline and the families of its 22,000 employees.
New Delhi
Goyal is also the founder of the full-service airline, which has been operating for more than 25 years.
"... no sacrifice is too big for me to safeguard the interest of Jet Airways and the families of the 22,000 employees. For the sake of my family of 22,000 employees and their respective families, I have today taken the step of stepping down from the board of Jet Airways," he said in a statement issued by the airline.
He became chairman of the company in April 1992.
"... my family is behind me and with me in this decision and I hope you will support my decision too. I will miss you one and all," Goyal said.
Goyals exit from majority control of Jet Airways
With the resignations of founder-promoter Naresh Goyal and his wife Anita Goyal from the board, lenders led by SBI have taken over the management.
The Jet board on Monday accepted the lenders' resolution.
Saddled with debt of more than $1 billion, Jet owes money to banks, suppliers, pilots and lessors, several of whom have started terminating leases with the carrier.
In its statement on the board meeting, 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 completed by June-end.
Among others, the board of directors of the company also cleared constitution of an interim management committee at the instructions of the lenders to manage and monitor the daily operations and cash flow of the company.
Several names are in circulation, including those of past chairpersons of SBI, including A.K. Purwar, Arundhati Bhttacharya, Air India's current chairman Ashiwni Lohani, to manage the airline's day-to-day operations.
The changes at the board immediately ensured funding of Rs 1,500 crore for working capital.
Sources said during the meeting of the board, the members, including the lenders, accepted that it may take 4-6 months to find a new buyer or investor. Very soon with the vacant two positions, lenders would nominate two directors to the board.
The company said its board of directors, at its meeting held on Monday, considered the resolution plan being formulated by a consortium of domestic lenders led by the State Bank of India. As per the resolution plan, two nominees of promoter, Naresh Goyal and Anita Goyal, and one nominee of Etihad Airways PJSC may step down from the board," it said.
Kevin Knight was the Etihad nominee.
Additionally, Naresh Goyal also ceased to be the Chairman of the company, the company added.
The board has given approval for issuance of 11.4 crore equity shares of the company to the lenders upon conversion of Rs 1 of the outstanding debt.
The company also said that its board approved creation of appropriate security over the company's assets for securing the existing facilities extended by the lenders and the proposed immediate funding support of up to Rs 1,500 crore by way of issue of appropriate debt instrument.
(With inputs from IANS)
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