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<ul><li>State Bank of India has reportedly agreed to infuse ₹15 billion into the private carrier.</li><li>Lenders to form an interim management committee to manage and monitor the daily operations and cash flows.</li><li>Lenders to undertake a bidding process for its shares. </li></ul>Jet Airways founder and chairman <keyword id="122732" type="PERSON" weightage="20" keywordseo="Naresh-Goyal">Naresh Goyal</keyword> on Monday stepped down from the board of the struggling airline. The move comes following an ‘emergency board meeting’ on Monday. Its main lender State Bank of India reportedly agreed to infuse ₹15 billion into the private carrier to help it stay afloat. Goyal’s wife Anita Goyal and Kevin Knight, a nominee of Etihad Airways, have also resigned. Stakes of both Naresh Goyal and Etihad, which owns a minority stake in the airline, have been halved following the move, passing on control of the airline to its lenders, according to media reports. Jet's shares rose almost 13% following the news of Goyal's exit. According to a regulatory filing by Jet, an interim management committee will be formed by its lenders led by the State Bank of India that will manage and monitor the daily operations and cash flow of the airline. Additionally, the lenders will begin a bidding process to sell shares to new investors by the end of the June quarter. Jet Airways, which is saddled with over $1 billion in debt, has grounded nearly 40 planes because of non-payment of dues in the past few weeks. Many of its pilots and other support staff have also not been paid salaries for several months, according to media reports. Earlier this year, the airline struck a debt resolution plan with its lenders. However, there were disagreements between the Jet's management and Etihad Airways, as well as among creditors, prompting the Indian government to hold an emergency meeting recently to urge its state-run lenders to bail out the airline. With IANS

Naresh Goyal resigns from Jet Airways following emergency board meeting

<ul><li>Ahead of a potential exit by <keyword id="140808" type="COMPANY" weightage="20" keywordseo="Etihad-airways">Etihad Airways</keyword> at the end of this month, <keyword id="6358200" type="COMPANY" weightage="20" keywordseo="jet-airways">Jet Airways</keyword>’ main creditor, the State Bank of India, and its founder <keyword id="122732" type="PERSON" weightage="20" keywordseo="Naresh-Goyal">Naresh Goyal</keyword>, who recently resigned, have reportedly ramped up the search for a new investor. </li><li><keyword id="13222" type="CITY" weightage="20" keywordseo="SBI">SBI</keyword> is said to be in preliminary talks with <keyword id="124318" type="COMPANY" weightage="20" keywordseo="TPG-Capital">TPG Capital</keyword>, a private equity major, while Goyal is pursuing an investment from Delta Airlines. </li><li>In addition to TPG and Delta, Singapore’s private equity fund Temasek and the Abu Dhabi Investment Authority (ADIA) are also said to be in talks to purchase a stake in the airline. </li></ul> Ahead of <a href="https://www.livemint.com/companies/news/deal-or-no-deal-etihad-to-take-final-call-on-jet-airways-on-31-march-1553467810101.html">a potential exit by Etihad Airways</a> at the end of this month, Jet Airways’ main creditor, the State Bank of India, and its founder Naresh Goyal, who recently resigned, have reportedly ramped up the search for a new investor. In fact, the hunt has taken SBI and Goyal, who owns a minority stake, to the US, according <a href="https://economictimes.indiatimes.com/industry/transportation/airlines-/-aviation/hunt-for-jet-airways-buyer-takes-sbi-goyal-to-tpg-capital-and-delta-air-lines/articleshow/68623464.cms">to media reports</a>. SBI is said to be in preliminary talks with TPG Capital, a private equity major, while Goyal is pursuing an investment from Delta Airlines, which has <a href="https://www.business-standard.com/article/companies/we-are-building-strong-links-with-indian-market-says-delta-vp-nat-pieper-117070500181_1.html">an operational alliance with Jet in India</a>. Interestingly, private equity firm TPG Capital was said to be <a href="https://www.livemint.com/Companies/05AZZqQrKM021AiHThx9KP/TPG-Capital-joins-race-to-buy-stake-in-Jet-Privilege.html">eyeing a stake</a> in Jet’s loyalty programme Jet Privilege in August last year, although a deal never materialised. A new investor is “critical” to Jet’s future, the airline’s CFO, Amit Agarwal, told <a href="https://economictimes.indiatimes.com/industry/transportation/airlines-/-aviation/a-new-investor-is-critical-to-jet-airways-future-cfo/articleshow/68571160.cms">ET</a> earlier this week. Jet desperately needs a cash infusion. An official at the company told Moneycontrol that a buyer would have to pump <a href="https://www.moneycontrol.com/news/business/jet-airways-new-investor-needs-to-bring-rs-4500-cr-capital-3705181.html">₹45 billion</a> as part of the airline’s turnaround plan. In addition to TPG and Delta, Singapore’s private equity fund <a href="https://www.business-standard.com/article/companies/suitors-for-jet-airways-hunt-for-partners-naresh-goyal-may-join-race-119032900056_1.html">Temasek and the Abu Dhabi Investment Authority (ADIA</a>) are also said to be in talks to purchase a stake in the airline. The bidding process opens in the second week of April and concludes at the <a href="https://economictimes.indiatimes.com/industry/transportation/airlines-/-aviation/hunt-for-jet-airways-buyer-takes-sbi-goyal-to-tpg-capital-and-delta-air-lines/articleshow/68623464.cms">end of next month.</a> Most Indian airlines are <a href="https://www.moneycontrol.com/news/business/major-airlines-may-opt-avoid-bidding-for-jet-airways-3714941.html">expected to steer clear </a>of the bidding. The reports of Jet’s investor hunt come a day after Jet was unable to <a href="https://www.livemint.com/companies/news/jet-airways-delays-ecb-repayment-amid-liquidity-crunch-1553798519714.html">make a scheduled payment</a> on an external commercial borrowing (ECB) facility owing to a liquidity crunch. The airline has also been unable to pay salaries to its pilots and support staff as well as aircraft vendors. Under the airline’s resolution plan, a consortium of banks, led by SBI, will convert their debt to equity, taking a majority stake of 50.1% in the process. Meanwhile, Goyal, who has resigned as the airline’s chairman and board member, will see his shareholding whittle down <a href="https://www.livemint.com/companies/news/naresh-goyal-resignation-banks-take-over-jet-airways-new-investor-coming-in-1553509713332.html">from 50.1% to 25.5%</a>. Etihad will take a final call on whether to sell its 24% stake in Jet or not <a href="https://www.livemint.com/companies/news/deal-or-no-deal-etihad-to-take-final-call-on-jet-airways-on-31-march-1553467810101.html">on March 31st.</a> SEE ALSO: <a href="https://www.businessinsider.in/jet-airways-chairman-naresh-goyal-steps-down/articleshow/68212261.cms">Jet’s chairman finally agrees to step down, paving way for bank-led bailout</a> <a href="https://www.businessinsider.in/naresh-goyal-and-etihad-statement-may-help-jet-airways-debt-resolution-plan/articleshow/68165797.cms">The threat of bankruptcy forces Etihad and Naresh Goyal to call for truce</a> <a href="https://www.businessinsider.in/lenders-plan-to-keep-jet-airways-afloat-may-put-etihad-in-the-cockpit/articleshow/67451283.cms">Lenders’ plan to keep Jet Airways' afloat may put Etihad in the cockpit</a>

Jet Airways’ desperate search for a new investor takes it to the US, Singapore and UAE

<ul><li><keyword id="122732" type="PERSON" weightage="20" keywordseo="Naresh-Goyal">Naresh Goyal</keyword>, the chairman of <keyword id="6358200" type="COMPANY" weightage="20" keywordseo="jet-airways">Jet Airways</keyword>, has finally agreed to relinquish his stewardship of the struggling airline. </li><li>The move follows a meeting of Jet’s creditors and partner <keyword id="6437601" type="ORGANIZATION" weightage="20" keywordseo="etihad">Etihad</keyword> on February 28th. </li><li>The reduction of Goyal’s stake was a key component to a $900 million resolution plan by the airline’s consortium of creditors, led by <keyword id="6354731" type="UNKNOWN" weightage="20" keywordseo="state-bank-of-india">State Bank of India</keyword>.</li></ul>Naresh Goyal, the chairman of Jet Airways, has finally agreed to relinquish his stewardship of the struggling airline. The move follows a meeting of Jet’s creditors and partner Etihad on February 28th. The reduction of Goyal’s stake was a key component in a $900 million resolution plan by the airline’s consortium of creditors, led by State Bank of India. The bailout will see the banks convert their debt into equity. As a result, Goyal will lose his majority shareholding, which will make it easier for partner Etihad to seize the reins. Sources told the Economic Times that Goyal’s stake would<a href="https://economictimes.indiatimes.com/industry/transportation/airlines-/-aviation/naresh-goyal-agrees-to-step-down-as-jet-airways-chairman/articleshow/68211070.cms"> fall to 20%</a> from 51%. He will also have to give up his board seat in name. The seat will stay in the Goyal family - going to his son Nivaan Goyal. The resolution plan also involves the <a href="https://www.businessinsider.in/naresh-goyal-and-etihad-statement-may-help-jet-airways-debt-resolution-plan/articleshow/68165797.cms">raising of ₹8.5 billion</a> worth of capital, a quarter of which will come from Goyal and Etihad - which will likely see its 24% stake in the airline rise. The next step will be the issue of fresh shares. As per the plan, Jet’s creditors will become the largest shareholders in the company. Goyal’s resignation has been a long time coming. However, the final piece in the puzzle is Etihad. The banks want Etihad to take operational control of the airline, but the UAE-based aviation group has so far been reluctant. It rejected a proposal to put ₹7.5 billion of bridge funding in the airline at Thursday’s meeting - until a final resolution plan was in place. Etihad has been extremely rigid about its participation in the bailout, having dealt with the fallout <a href="https://www.arabianbusiness.com/transport/398798-etihad-airways-improves-performance-but-alitalia-airberlin-continue-to-haunt-financials">of two other partner insolvencies</a> in the recent past. Etihad wants the right of refusal in the event that Jet’s lenders sell their shares and exit the airline in the future. It also wants to be granted a reprieve from making an open offer for an additional 20% stake once it’s shareholding crosses 25% - <a href="https://www.thehindubusinessline.com/markets/stock-markets/sebis-takeover-code-raises-open-offer-trigger-to-25/article20312244.ece1">a SEBI regulation</a>. SEE ALSO: <a href="https://www.businessinsider.in/naresh-goyal-and-etihad-statement-may-help-jet-airways-debt-resolution-plan/articleshow/68165797.cms">The threat of bankruptcy forces Etihad and Naresh Goyal to call for truce</a> <a href="https://www.businessinsider.in/lenders-plan-to-keep-jet-airways-afloat-may-put-etihad-in-the-cockpit/articleshow/67451283.cms">Lenders’ plan to keep Jet Airways' afloat may put Etihad in the cockpit</a>

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