Beleaguered airline Jet Airways flew high on Dalal Street on Monday after founder Naresh Goyal and his wife Anita stepped down from the board as part of a rescue plan.
Shares of Jet outpaced the market with a rally of 12.69 per cent against 0.93 per cent fall registered by benchmark BSE Sensex.
The airlines board approved a resolution plan formulated by SBI-led consortium of lenders. Now, Goyal will remain an investor with 25 per cent stake, with lenders controlling lions share of 50.1 per cent.
Anil Singhvi, Chairman of Ican Investment believes this is a step in the right direction. “This is a pre-IBC resolution plan rather than litigating after going into the NCLT process. It is much better. Proactively, the banks are looking for solutions and it is high time,” he noted.
The market capitalisation Jet Airways stands at around Rs 2,900 crore as against total outstanding loans and other dues, which are in excess of Rs 10,000 crore.
Singhvi in a chat with ETNow said, “It is much better that we have these kind of resolutions than litigations. I think it is good for shareholders, good for lenders. It is very important that lenders proactively look at it. They must infuse funds and get a professional setup of the board and the management team and be again in the business. We cannot afford to lose Jet Airways.”
In the filing to stock exchanges, Jet Airways said Naresh Goyal, Anita Goyal and one nominee of Etihad Airways would step down from the board.
Abu Dhabi-based Etihad is a strategic partner with 24 per cent stake in Jet Airways.
The airline firm, which has been operating for more than 25 years, has been facing a financial crunch.
Mustafa Nadeem, CEO, Epic Research said, “With Naresh Goyal stepping down, it might help the company get around Rs 1,500 crore as funding, which is just a relief for a very short term. The overall scenario is still wore.”
Earlier, Jet Airways suspended operations on at least 14 international routes till the end of April and over 80 planes are on the ground. As many asRead More – Source
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