CFO Amit Agarwal latest in line to abandon ship | Etihad’s offer short of lender expectations | Dubai-based airline keen to stay on as minor investor.
Jet Airways’s Deputy Chief Executive and Chief Financial Officer Amit Agarwal resigned from the company with immediate effect. The regulatory finding cited ‘personal reasons.’
“cannot be expected to be the sole investor” and “additional suitable investors would need to provide the majority of Jet Airways’ required recapitalisation.” – Etihad Airways said in a statement.
- The airline did not mention a replacement for Agarwal, who had joined Jet in 2015 as its CFO.
- The debt-ridden airline continues to stay in limbo since seizing operations in mid- April due to acute liquidity crisis.
- Most of the airline’s board members have also quit in the last couple of months including Chairman Naresh Goyal and Director Nasim Zaidi.
- The SBI-led lender consortium grapples to bring in fresh investors with the deadline expired without any satisfactory bids.
- Etihad‘s was the only official bid submitted in time but demands the Bank consortium to take a haircut on the 1400 Crore debt.
No clear takeover bid leaves lenders grappling
Hopes were raised for the embattled airline which received two unsolicited bids from the employees of Jet and a UK-based entrepreneur. Even if the escape plan works out, the consortium will have to provide capital to get the airline back on its feet.
Etihad reluctant to take up a bigger role
Etihad has said it only wished to invest as a minority stakeholder and maintain its stake at 24 per cent. A source close to the development said:
“Etihad was the only one to submit a formal bid within the stipulated timeframe but its offer falls short of the lenders’ expectation. This bid alone will not suffice to revive the airline.”