Shareholders of floundering air carrier Jet Airways voted against approving the financial accounts for FY19 and FY20 in the 28th Annual General Meeting (AGM) held recently.
The meeting held through video conferencing and other audio-visual means resulted in a majority of the shareholders rejecting the financial results of the preceding two fiscals. Almost 95 per cent vetoed the financial results for FY20 and another 96 per cent dismissed the FY19 results.
The accounts for the two financial years had been finalized last July and February this year respectively. The audited accounts were then shared with the shareholders in the meeting for their acceptance. The company’s founder, Naresh Goyal, abstained from voting and so did other members of the promoters group.
Resolution professional, Ashish Chhawchharia, informed that the approval of the financial accounts had been rejected with an overwhelming majority. “Hence, the resolution was not passed with requisite majority for which AGM was adjourned sine die and the same shall be considered in adjourned meeting after giving the notice to the shareholders,” he noted.
Jet Airways was one of the largest operators in India in terms of market share but had since fallen on hard times since 2019. The airline founded by Naresh Goyal was forced to shut down operations in April 2019 after it ran out of funds and was denied emergency funding by lenders. Since then it has been languishing under insolvency for the past two years.
The development comes before the NCLT’s ruling on the proposed bid submitted by the Kalrock-Jalan consortium to take over the bankrupt airline. The proposal calls for a change in shareholding, with the consortium acquiring nearly 90 per cent of the total shares. Banks and other lenders will hold about 9 per cent and the remaining 1 per cent will go to the public shareholders. The Directorate General of Civil Aviation (DCGA) had earlier informed the NCLT that slot cannot be granted to the airline on the basis of historic precedence and slot allocation guidelines would be strictly adhered to. Jet Airways’ slots were distributed among other operators after it stopped flight operation.