Jet Airways crisis deepens |
The crisis of Indian carrier Jet Airways has deepened further on Monday with the non payment of lease rental causing two more of its aircrafts to be grounded taking the total of planes on ground to 23. With this, approximately 20 percent of the aircrafts of Jet are now out of operations. The bank led consortium of lenders has exerted that it cannot be just a bank driven bailout and both chairman, Naresh Goyal and Etihad Airways have to play an equivalent role. Naresh Goyal, on his part, has reportedly stepped down from Jet Airways board and also agreed to reducing his stakes from 51 percent to 22 percent. But the recent tightening of takeover code and Issue of Capital and Disclosure Requirements for exemption from open offers, by the Securities and Exchange Board of India has made a huge impact in the Etihad Airways` plans to bring in fresh funds in Jet Airways Ltd. On February 23, the board of Jet Airways approved the conversion of its debt into equity, and as a result, founder and Chairman Naresh Goyal`s stake in the carrier fell from 51 percent to below 20 percent. On March 1, Goyal agreed to step down from the board and gave up his directorial powers.
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