Jet Airways Crisis: Naresh Goyal opts out from bidding but lenders keep revival hopes alive

Jet Airways founder Naresh Goyal has decided not to bid for acquiring stake in the cash-strapped airline, PTI quoted sources as saying. Goyal, who had stepped down as chairman of the carrier last month, has withdrawn the bid for the airline. On April 12, sources said that Goyal had also put in bid for the carrier.

According to a regulatory filing, Goyal had pledged 26 per cent stake in the airline as security for loans from Punjab National Bank. Last month, Goyal and his wife Anita Goyal quit the board of cash-strapped carrier as part of a debt resolution plan.

Goyal gave up the chairmanship of Jet Airways, which he founded more than 25 years ago, under a debt restructuring plan wherein lenders have taken control of the carrier.

Meanwhile, the Punjab National Bank (PNB) on Tuesday said that the lenders are committed to the revival of crisis-hit Jet Airways and working on the plan over the Rs 1,500-crore emergency funds promised by the SBI-led consortium to the ailing airline.

“Lenders are committed to Jet Airways revival plan. SBI, SBI caps have started working on the plan. Revival plan has not been finalised yet, discussion is still on,” said PNB Managing Director and CEO Sunil Mehta.

The statement comes as a hope for the debt-ridden airline which has more than Rs 8,000 crore debt and is facing the threat of permanent closure.

On Monday, the lenders had deferred a decision to provide emergency funds to the debt-ridden carrier. Jet Airways chief executive Vinay Dube in an internal communication said the lenders could not decide on the emergency funding and that the board of the airline will meet on Tuesday to take a call on the future.

Meanwhile, the airline extended the suspension of its services on overseas routes till April 18 the decision was taken following the non-receipt of funds from its lenders, who have now management control of the airline following a debt-restructuring plan last month.

On March 25, the airline's board had approved 'the debt resolution plan', under which SBI-led consortium would provide an emergency loan of Rs 1,500 crore and in turn acquire majority stake.

But banks have so far disbursed only under Rs 300 crore and that too in small amounts, citing procedural delays. This left the airline cancelling hundreds of flights as the airline failed to pay the lease rentals.

Currently it has just six-seven planes for operations, way below its peak of 123 planes in December.