21 March 2019: Alarmed by the speed at which Jet Airways is flying from bad to worse, lenders of the crisis-hit airline led by the State Bank of India have asked chairman and promoter Naresh Goyal and his management team to step down with immediate effect. They have also told him to reduce his stake in the company from 17 per cent to 10 per cent.
“The lenders have made their case clear. The plan is to overhaul the management with Naresh Goyal stepping down. They are ready to give time till March 24 for Jet Airways to come up with a better proposal. Else, the Committee of Creditors is likely to take hold,” a senior finance ministry official said.
SBI chairman Rajnish Kumar on Wednesday met Finance Minister Arun Jaitley along with Aviation Secretary Pradip Singh Kharola and Principal Secretary to Prime Minister Nripendra Misra. Kumar said the meeting was to apprise the government of the dynamic situation.
Sources said the reason why bankers are wary about Insolvency and Bankruptcy Code is because most of the loans were given against brand value without any tangible collateral. This means, the bankers will not be able to recover any value.