Held on 25 March 2019
The Board of Directors of Jet Airways at its meeting held on 25 March 2019 has approved the following -The conversion of Re 1 of Lenders' debt into equity by the issuance of 11.4 crore equity shares, in accordance with the RBI Circular of 12 February, 2018. With this, the consortium of Indian lenders, led by State Bank of India (SBI), will become the majority shareholders of Jet Airways.
Reconstitution of the Board of Directors of the Company by:
-Resignation of Promoter, Naresh Goyal, Anita Goyal, and Kevin
Knight, nominee director of Etihad Airways from their positions on the
Company's Board.
-The two nominees of the Promoter and one nominee of Etihad Airways will
continue on the Board.
-Two lender nominees will be inducted to its Board, subject to the receipt of
requisite approvals.
As part of the Resolution Plan, the Lenders will provide an immediate interim funding support of Rs 1500 crore to Jet Airways. The Company will also engage with payment intermediaries for release of trapped cash. The airline will leverage the funding to partly clear pending dues towards lessors, vendors, creditors and employees in a phased manner. The move will see Jet Airways re-deploy several of its grounded aircraft back into its network, helping renew many of the routes it had temporarily suspended, which will help restore normalcy of operations, aiding the airline's long term transformation to continue expansion and to regain its position as a global player.
An Interim Management Committee (IMC) has been constituted to oversee the overall financial and operational performance of the airline under the overall supervision of the Board of Directors with the support of McKinsey & Co.
As part of the resolution plan, the Lenders will also begin the process of sale/ issue of shares to new investors which is expected to be completed in the June quarter.
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