Naresh Goyal quits Jet board, lenders take over cash-strapped airline

Saddled with more than $1 billion of debt, Jet is struggling to stay afloat

Jet Airways Ltd Chairman Naresh Goyal and his wife Anita Goyal have quit the board of the cash-strapped airline, the airline said on Monday as it closes in on a rescue deal led by state-run banks.

The banks, led by State Bank of India (SBI), will convert their debt into equity and take a controlling stake in the airline for a token sum of 1 rupee ($0.0145), Jet said in a statement to the stock exchanges after a meeting of its board. The lenders will constitute an interim committee to manage the airline, reported news agency Reuters.

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