Naresh Goyal opts out from bidding for Jet Airways as debt-laden airline's management proposes to halt all operations

Jet Airways founder Naresh Goyal has decided not to bid for acquiring stake in the cash-strapped airline, sources said on Tuesday.

The full service carrier, which is currently operating less than 10 aircraft, is awaiting fresh fund infusion under a debt resolution plan.

Meanwhile, the management of Jet Airways has proposed to suspend all operations of the debt-laden airline at its board meeting, Reuters reported citing ET Now on Tuesday quoting sources.

There were reports that lenders to Jet Airways might not consider an initial bid from Goyal to regain control of the troubled airline as he did not fulfil certain conditions set by them while submitting the EoI on Friday.

Airline sources said Goyal, who had stepped down as chairman of the carrier last month, has withdrawn the bid for the airline.

On 12 April, sources said that Goyal had also put in bid for the carrier.

SBI Capital Markets has the mandate for Jet Airways’ sale on behalf of the SBI-led consortium of the domestic lenders to the debt-ridden private carrier.

Last month, Goyal and his wife Anita Goyal stepped down from the board of the airline, which has more than Rs 8,000 crore debt.

Meanwhile, shares of Jet Airways plunged nearly 19 percent on Tuesday amid reports that the company is likely to temporarily shut down its operations.

The scrip which had opened the day on a weak note further plummeted 18.56 percent to Rs 213.20 on BSE during the afternoon trade.

At NSE, shares cracked 18.53 percent to Rs 213.20. The BSE has sought clarification from Jet Airways with reference to news that it is likely to temporarily shut down its operations.

Jet Airways is grappling with acute financial crunch and is operating less than 10 planes besides temporarily suspending international operations.

Similar movement was seen on NSE, where the stock opened at Rs 255, then fell to a low of Rs 252.10, down 3.66 percent over its previous closing price.

On Monday, the airline in a letter to its employees said it planned to extend its suspension of international flights until Thursday as it had not received any interim funding from lenders.

Jet has been grounding planes in recent weeks as lessors move to de-register and take back their aircraft, even as the company’s lenders sought expressions of interest in the carrier from potential investors.

Local media have reported that as many as six parties have submitted expressions of interest, though it is still far from clear if an acceptable bid will materialize.

Jet Airways did not immediately respond to a Reuters request for comment.

— With inputs from agencies