Naresh Goyal, founder of Jet Airways has withdrawn from the race to bid for retaking control of the ailing airline.
According to sources, Goyal has exited the process as the lenders were not keen to go ahead with his application.
"Though the application by Goyal was legally compliant, there were other issues at play in the discussion. Some of the other bidders were not comfortable with Goyal being in the race , " said a source close to the lenders.
On March 25, Goyal, the Promoter and Chairman of Jet Airways, along with his wife Anita Goyal, was forced to step down from the board after the company defaulted on payments. The lenders had also converted a substantial part of his pledged shares into equity.
Goyal had then said that he agreed to sacrifice his control and interest in the airline with the sole aim to ensure the Jet family’s lasting welfare. His exit was seen as a welcome move by the lenders as it paved the way for bringing in a new investor to revive the ailing airline.
Goyal’s attempt to come back through the bidding route, initiated by the lenders, had made the process more complex.
“Some of the other bidders such as Etihad may not be comfortable if Goyal is in the fray. This raises serious doubts on the entire process,”said a source close to one of the bidders.
Under an earlier plan, Goyal’s stake in the airline was to come down to 17 per cent, but he wanted lenders and joint venture partner Etihad to leave the door open for him to buy back shares.
The draft agreement between all parties had put a cap of 22 per cent on promoter stake. Goyal wanted the cap removed so that he can claw his way back once the financial crisis is over.