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Jet Airways revival: Etihad offer hinges on Rs 9,000-cr debt write-down

15 May 2019

Jet Airways lenders have taken a controlling stake in the airline, and are now in the process of selling a stake to recover their dues.

In a regulatory filing, Jet Airways on Tuesday said that Amit Agarwal had resigned from the services of the company with effect from May 13, 2019 due to personal reasons.

Jet Airways shares plunged more than 13 per cent on Tuesday, after the now-grounded airline said its deputy CEO and chief financial officer Amit Agarwal had resigned. He holds a Master's degree in Operations Research from the University of North Carolina.

Before joining Jet, he was senior VP (Asia Pacific) at Delta. At the closing bell, the stock price ended 7.42 per cent lower at Rs 129.10 on BSE and Rs 128.90, down by 7.33 per cent, on the NSE.

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Lenders of Jet Airways led by state-run State Bank of India (SBI) are now in the process of selling the airline to recover their dues of over Rs 8,400 crore.

Dube took over as the airline's CEO in August 2017, filling in a spot that had been vacant since early 2016.

Private equity firm TPG Capital, Indigo Partners, National Investment and Infrastructure Fund (NIIF) and Etihad Airways had been shortlisted to place their bids after they submitted Expressions of Interest (EoIs).

Most of the airline's board members have also quit in the last one month. The Serious Fraud Investigation Office (SFIO) of the corporate affairs ministry is looking into alleged irregular transactions by Jet's founder Naresh Goyal.

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The airline ceased operations temporarily around mid-April due to acute liquidity crisis.

Till going to the press neither SBI Caps nor State Bank of India (SBI), which is leading the consortium of lenders, said anything on the contents of the bid received from Etihad. The four quit after it became clear in last two days that Etihad's offer to invest in Jet may not be enough to make the airline fly again.

"Etihad re-emphasises that it can not be expected to be the sole investor, and that, amongst other requirements, additional suitable investors would need to provide the majority of Jet Airways' required recapitalisation", Etihad spokesperson said.

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Jet Airways revival: Etihad offer hinges on Rs 9,000-cr debt write-down