A day after beleaguered airline Jet Airways’ Naresh Goyal reportedly agreed to step down as chairman, its shares on the BSE went up by 5.32 per cent to Rs 234.65 even as the lenders’ consortium led by State Bank of India looks to become the largest shareholders in the airline under the bailout plan, the Indian Express reported.
The airline on Friday said that its debt recast plan also looks at the right governance structure including board composition, among other measures. “Along with the restructuring of the company, the Bank Led Provisional Resolution Plan (BLPRP), inter alia, also contemplates appropriate governance structure including board composition,” Jet Airways said in an exchange filing.
In a joint statement on February 25, Jet and UAE-based Etihad Airways said they are working towards finalisation of bank-led provisional resolution plan along with key financial stakeholders.
Both Jet and Etihad have also claimed that the airline would “re-emerge as a viable and robust airline to reclaim its rightful place as airline of first choice for its customers,” after the airline is bailed out as per the plan.
The board of Jet Airways has agreed to give a majority stake of 50.1 per cent to lenders by converting part of its debt into equity.
However, Etihad Airways is not looking to invest in Jet Airways until the resolution plan is approved. Etihad, which has 24 per cent stake in Jet, has decided to back it after the resolution plan piloted by State Bank of India (SBI), is finalised and approved, the Financial Express reported citing sources.
Etihad’s decision was communicated to the bankers and Jet at a meeting called by SBI on Wednesday.
As per the bank-led provisional resolution plan, Jet had agreed to allot 11.4 crore shares at an aggregate value of Re 1 to the lenders’ consortium led by SBI. Consequently, Goyal and Etihad’s stakes will be reduced by half to 25 per cent and 12 per cent, respectively.
