State Bank of India chairman Rajnish Kumar is confident that the restructuring process of beleaguered carrier Jet Airways should get completed without much problems, terming it as a ‘meal ready to be served’.
Earlier on Monday, 25 March, Jet Airways chairman Naresh Goyal, and his wife Anita Goyal, stepped down from the airline’s board to allow the board to move ahead with a debt recast plan for rescuing the airline he founded in 1993.
One nominee of Etihad Airways PJSC will also step down from the board, Jet Airways said in a media statement. Goyal will cease to be the chairman of the airline.
Abu Dhabi-based Etihad is a strategic partner with a 24 percent stake in Jet Airways.
According to the statement, the board has also approved immediate funding support of Rs 1,500 crore by lenders via debt. The bidding process for new investors will start in June.
Speaking to BloombergQuint, the SBI Chairman said, “Rs 1,500 crore as priority funding has been infused in Jet Airways for around two months.”
He also expressed confidence that the sale process will be over within these two months, adding that doors are open for everyone, including Goyal and Etihad.
“The resolution plan for Jet Airways is almost ready. The work has been going on for last four months. Today's development in the Jet Airways board meeting ensures that new investors can evaluate the enterprise and they can submit plans on how they will revive Jet. The process will start immediately. We will be appointing merchant bankers to kickstart the process,” Kumar said.
He also added that a reputed firm will be appiunted to look after restructuring.
The official statement issued by Jet Airways also read that the airlines will constitute an Interim Management Committee at the “instructions of the lenders to manage and monitor the daily operations and cashflow of the company.”
Saddled with more than $1 billion of debt, the development comes at a time when the airline has grounded majority of its fleet over non-payment of dues to banks, suppliers and pilots.
No Sacrifice Too Big to Safeguard Interest of Jet Airways: Goyal
In a statement, Goyal said no sacrifice is too big for him to safeguard the interest of the airline and the families of its 22,000 employees.
“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.”Naresh Goyal, Founder, Jet Airways
Sad Day for Aviation Industry: SpiceJet Chief
Responding to the news, SpiceJet chief Ajay Singh said it was a “sad day” for Indian aviation.
Singh, who is the Chairman and Managing Director of budget carrier SpiceJet, also said it was a wake-up call for the country’s policymakers to address structural challenges that are making domestic airlines uncompetitive.
“We urgently need to address structural challenges that make India's airlines uncompetitive to airlines around the world,” he added.
Jet Airways Shares Surge 15.5%
Shares of Jet Airways zoomed 15.5 percent with its founder and Chairman Naresh Goyal and his wife Anita Goyal stepping down from the crisis-hit airline’s board.
The stock jumped 12.69 percent to close at Rs 254.50 on the BSE. During the day, it rose sharply by 17.77 percent to Rs 266.
On the National Stock Exchange (NSE), shares zoomed 15.46 percent to close at Rs 261 apiece.
On the traded volume front, 33.60 lakh shares were traded on the BSE and over 4 crore shares on the NSE during the day.
Here is the company’s statement:
(With inputs from PTI and BloombergQuint)
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