Jet Soars on Re­port Goyal may Step Down

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Mum­bai: Jet Air­ways’ stock soared over 16% on Mon­day af­ter a me­dia re­port said a res­o­lu­tion plan for the air­line’s bailout will be fi­nalised this week and that founder chair­man Naresh Goyal will cede con­trol­ling stake and step down from the board.

The stock closed at ₹ 294.40, beat­ing the Sen­sex which fell a tad. This was the big­gest gain for Jet’s stock since Novem­ber 15, when it rose 24%.

A con­sor­tium of lenders led by State Bank of In­dia, the coun­try’s largest bank by de­posits, has been meet­ing fre­quently to stitch to­gether a res­o­lu­tion plan for Jet.

In­dia’s sec­ond big­gest air­line has de­faulted on loans for De­cem­ber, and de­layed em­ployee salaries and air­craft lease rentals.

Jet has been try­ing to con­vince Eti­had Air­ways, which owns 24% in Jet, to in­crease its stake. Abu Dhabi-based Eti­had’s key con­di­tion has been that Goyal should give up own­er­ship and de­ci­sion mak­ing pow­ers, as ET had re­ported ear­lier.

Ac­cord­ing to a me­dia re­port on Mon­day, Goyal has changed his

long-en­dur­ing stance of re­tain­ing con­trol in the air­line, ced­ing to Eti­had’s de­mand. The re­port said his stake may de­cline to 20-25% (ET had re­ported Eti­had’s de­mand of 22%) from 51% cur­rently. Eti­had may in­crease its stake sig­nif­i­cantly from 24% and banks may raise eq­uity as part of re­struc­tur­ing. It also said Goyal’s son Ni­vaan Goyal may re­place him on the board. ET on Mon­day had re­ported that Eti­had has also put for­ward ad­di­tional clauses in­clud­ing that it won’t pledge its shares to Jet’s lenders for loans and that banks have to lend dou­ble the amount that Eti­had puts in as eq­uity.

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