MUMBAI: Jet AirwaysNSE 2.35 % founder promoter Naresh Goyal is set to lose control of his beleaguered airline after the board approved a proposal allowing a consortium of banks to become the largest shareholder. The stake of Goyal, who founded the airline in April 1992, could drop to as low as 20% from 51% now while Etihad Airways — along with a partner — may eventually become the biggest shareholder.
Banks, led by State Bank of IndiaNSE -1.07 %, will convert a portion of their debt into equity, making them the largest shareholders, a statement from Jet said on Thursday.
The bank-led resolution plan (BLRP) is “to meet a funding gap of nearly Rs 8,500 crore which is to be met by an appropriate mix of equity infusion, debt restructuring, sale/sale and leaseback/ refinancing,” the statement added.
