Jet's new flight path

Banks gave too long a rope to promoters

Lenders to Jet Airways have finally decided to act tough by asking promoter Naresh Goyal and three of his nominees to step down from the board immediately so that they have no role in running the airline. The lenders have agreed to put in Rs 1,200 crore of interim financing, which would make them the majority equity holder after Etihad decided to pull out. The move by lenders is in tune with a framework outlined by the Reserve Bank of India (RBI) last year. The procedure, applicable for companies with a negative net worth, is called bank-led provisional resolution plan.