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Wednesday, 15 May, 2019, 16 : 30 PM [IST]

Jet shares fall 7% as top executives exit

As per the reports of Economic Times (ET), shares of Jet Airways plunged almost 7 per cent in morning trade on Wednesday and looked on course to extend its losing streak into the third successive session. 

Shares of the company have been falling in the wake of a series resignations by the company's top brass. Vinay Dube, CEO, Amit Agarwal, CFO and Rahul Taneja, head of human resources quit within a span of 24 hours, raising serious doubts over the revival of the debt-laden airline. 

Meanwhile, media reports suggested that the lenders of the company and Etihad Airways have approached the Hinduja Group offering a stake in the grounded airline. 

ET reported that the Hinduja Group has so far not given a clear commitment about investing in Jet, but began showing interest after Etihad representatives approached GP Hinduja, the elder brother, who heads the group. The senior Hinduja, in turn, put Etihad in touch with Ashok Hinduja, the younger brother, who leads the India business. 

Etihad was the only one — among the entities shortlisted by Jet’s lenders — to submit a bid on Friday. However, its bid was highly conditional and hinged on the stipulation that it would not own more than 24 per cent (its current shareholding) in Jet. It said it would invest only up to Rs 1,700 crore in the airline. 

Etihad was also non-committal about taking on Jet’s liabilities. The Gulf carrier has asked banks to take a 70-80 per cent haircut on Jet’s Rs 8,500-crore loans. Etihad had said it was the banks’ responsibility to look for a majority partner for Jet. 

Shares of Jet Airways traded 3.99 per cent down at Rs 123.95 on BSE around 9:55 am. 

(Source: ET)





 
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