Jet Airways Crisis: Naresh Goyal is ready to pledge the rest of his shares

Naresh Goyal the founder of Jet Airways is all set to pledge the rest of his shares to the lenders but conditions apply. He is of a view that they should release the interim loan funding of Rs.1500 crore without delay. Goyal owns around 51% in the airline but has pledged 31.2% with lenders. There has been no response from the lenders on this as yet.

As reported by Economic Times, Naresh Goyal has sought the interim funds through a signed letter on the advice of the airline’s chief financial officer Amit Agarwal. This was revealed by one of the three people who have knowledge of the matter. Goyal met the airline lenders along with two of Jet Airways directors Ashok Chawla and Nasim Zaidi, former aviation secretary and ex-director general of civil aviation(DGCA).

Goyal’s pledge is also very important for the banks who plan to sell a controlling stake in the airline to a new investor. Jet, which has grounded most of its planes, defaulted on vendor payments and delayed salaries is much in need of Interim funds. The Jet management has also estimated that if the promised loans are not released immediately they will not be able to survive beyond this month.

The report by ET further revealed that Etihad Airways, who is the second largest shareholder in Jet Airways is planning a board meeting to discuss the revival plan of the airline by the lenders like SBI. They will then decide whether to invest further. The airline had earlier decided to quit but resumed negotiations after Goyal resigned as the chairman and agreed to relinquish his shares. The Abu Dhabi carrier has stuck to its demand that they should be exempted from the takeover norm which requires the investors to make an offer for a further 20% stake if they exceed a 25% threshold. Etihad has a 24% stake in Jet.

Neither Jet Airways nor SBI has responded to the queries. Etihad too said it does not comment on speculations.

We shall soon upgrade you on this matter.

Also Read: Jet Airways Chairman Naresh Goyal & Wife Anita Goyal Resign Amid Debt Crisis