MUMBAI - A group of Indian state-run banks want Jet Airways' embattled founder and Chairman Naresh Goyal to reduce his stake in the carrier to 10 percent.
"Banks want Goyal to bring his stake down to 10 percent, below the 17 percent envisaged in the bank-led provisional resolution plan (BLPRP)," sources informed. The state-run banks are also pushing Goyal to step down, they added.
Jet has more than $1 billion in debt, and owes money to banks, suppliers, pilots and lessors - some of whom have started terminating leases with the carrier.
The government has asked state-run banks, led by State Bank of India (SBI), to rescue Jet without pushing it into bankruptcy, two people within the administration have revealed, as Prime Minister Narendra Modi seeks to avert thousands of job losses weeks before a general election.
Several people who have worked closely with Goyal, 69, have informed that his penchant for control has emerged as a major obstacle in negotiating a rescue deal.
SBI Chairman Rajnish Kumar had said on Wednesday that a resolution plan was "almost" ready and that it would not involve a bailout for any individual, including Goyal.
Jet and SBI did not immediately respond to requests for comment on Thursday, which is a public holiday in India.
