Jet Chairman Naresh Goyal resigns |
In the last ditch effort to save the Indian carrier Jet airways the Chairman Naresh Goyal along with his wife on Monday resigned from the board of the cash-strapped airline. Jet Airways Ltd. Chairman Naresh Goyal and his wife Anita Goyal on Monday, resigned from the board of the cash-strapped airline. Saddled with more than $1 billion of debt, Jet is struggling to stay afloat. It has delayed payments to banks, suppliers, pilots and lessors - some of which have forced the airline to ground more than 40 planes. The banks, led by State Bank of India (SBI), will convert their debt into equity and take a controlling stake in the airline for a token sum of 1 rupee ($0.0145), Jet said in a statement to the stock exchanges after a meeting of its board. According to sources the lenders would have two nominee on the board. The report of Naresh Goyal`s departure led to a rally in Jet`s shares amid heavy volumes. Kevin Knight, nominee of Etihad Airways PJSC, also resigned as director from the airline`s board. Over 33 lakh shares changed hands on the Bombay Stock Exchange compared with an average of 9.4 lakh shares traded daily in the past two weeks.
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