SBI to ask the senior banker to head Jet Airways

As the investor moved to take charge of cash-strapped Jet Airways, the SBI, which is the lead banker invites its senior banker to direct the airline and guide it out of the financial crises.

As per some familiar sources, the Jet chairman Naresh Goyal and his wife Anita Goyal along with the two other directors may resign from the board, as the bank takes charge of the airline. According to the report, the SBI asked the Goyal, his wife and the two other directors to resign from their posts.

But according to the Jet Airways statement, they denied the information and termed it as ‘factually incorrect.’

As per the plan the investor is set to take the airline and run it for a few months before selling it. According to the Memorandum of Understanding (MoU) too, the airline has become a board-run company with the promoters taking a back seat and limiting their ownership to 22% in perpetuity- a condition put by Etihad. But Goyal didn’t agree to this clause and wanted Etihad to reconsider the proposal. But Etihad refused to relent and offered its 24% stake in Jet Airways, as well as a 50.1% stake in Jet Privilege to SBI.

But SBI didn’t agree to acquire Etihad’s stake but working on a plan to take over the control on the airline, clean its books and then sell it to its prospective buyer.

If an investor agrees to the Etihad’s proposal, then they could easily hold a substantial 70% stake in the airline.

According to the deal which is now in the progress and has the government’s approval, banks are likely to get more than a 50% stake in the airline along with the investor which is a National Infrastructure Investment Fund (NIIF), which is 49% owned by the government of India which acts an anchor in the fund.

The stake of Naresh Goyal is likely to fall to 17.1%, while the funds are infused into the airlines by the banks and the lenders.