Founder of India’s beleaguered Jet Airways quits

Jet Airways founder Naresh Goyal has stepped down as chairman and left the company board. (AFP)
Updated 25 March 2019
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Founder of India’s beleaguered Jet Airways quits

  • Naresh Goyal leaves carrier as part of a rescue plan agreed with its lenders
  • Jet Airways has debts of more than $1 billion

NEW DELHI: Jet Airways Chairman Naresh Goyal will step down from the board and reduce his stake in the cash-strapped Indian carrier, the company said on Monday as it closes in on a rescue deal led by state-run banks.

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 its board met earlier on Monday.

The banks will also give the airline a fresh loan of $217.71 million (15 billion rupees) to meet payments and restore normal operations and the lenders will form an interim management committee to manage the airline, Jet said.

Saddled with debt of more than $1 billion, Jet owes money to banks, suppliers, pilots and lessors — several of whom have started terminating leases with the carrier.

The government has asked state-run banks, led by SBI, to rescue Jet without pushing it into bankruptcy, two people within the Indian government have told Reuters, adding that Prime Minister Narendra Modi is seeking to avert thousands of job losses weeks before a general election.

In its statement, Jet said the banks will initiate a bidding process to sell their stake in the airline to a new investor and that the process is expected to be complete by end-June.

Reports of Goyal’s departure led to a rally in Jet’s shares, which ended the day 12.4 percent higher.


Egypt's Banque du Caire eyeing sale of 20-30 pct stake for $300-400 mln

Updated 9 min 45 sec ago
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Egypt's Banque du Caire eyeing sale of 20-30 pct stake for $300-400 mln

  • A deal to sell the state-owned bank was cancelled in 2008, and a planned IPO has been repeatedly postponed over the past three years

CAIRO: The head of Egypt's Banque du Caire said on Thursday the bank was aiming to raise $300-400 million by selling a 20-30 percent stake by the end of 2019.
Chairman and Chief Executive Tarek Fayed told reporters that the timing of the initial public offering depended on market conditions.
A deal to sell the state-owned bank was cancelled in 2008, and a planned IPO has been repeatedly postponed over the past three years.