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Naresh Goyal to quit as chairman of debt-ridden Jet today: Report

Chief Executive Vinay Dube is expected to stay on board the 25-year-old airline Goyal set up with his wife in 1993, according to the report

Reuters 

Naresh Goyal
Naresh Goyal

Ltd Chairman and his wife are expected to leave the board of the cash-strapped airline on Monday, ET Now television channel reported.

Chief Executive is expected to stay on board the 25-year-old airline Goyal set up with his wife in 1993, according to the report.

Earlier this month, Reuters reported that Goyal had agreed to step down as chairman and reduce his 51 per cent stake in the airline.

The report also said that Jet's lenders may invoke Goyal's entire stake in the airline, and start looking for a new buyer in the coming weeks.

Saddled with more than $1 billion of debt, Jet is struggling to stay afloat. It has delayed payments to banks, suppliers, pilots and lessors - some of which have forced the airline to ground as many as 40 planes.

Jet has survived a near-death experience once before; in 2013, Abu Dhabi's injected $600 million of capital for a 24 per cent stake in the airline, three London Heathrow slots and a majority share in Jet's frequent flyer programme. The infusion helped Jet pare down debt and fight growing domestic competition.

Etihad's stake is likely to be diluted in the near future, the television channel reported.

was not immediately available for comment when contacted by Reuters.

First Published: Mon, March 25 2019. 10:21 IST
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