lightsaber wrote:blrsea wrote:jbs2886 wrote:
If I'm thinking about this right, can't SBI, the lenders and Etihad decide to sell to Tata or whomever else because they diluted NG's control via share ownership? Kind of a multi-step transaction.
They can, but no buyer (including EY) wants NG or his cronies anywhere near the company. With 18-20% share, he will still have a place on the board. So no go for now
Concur. Goyal might receive some, but not much. Certainly not a board seat. The money has to come from somewhere. EY might or might not invest depending on terms. The fact they haven't says their minimum terms have not been met. There is no point investing unless Jet can be made viable (profitable) quickly.
I really wonder how much longer the standoff can last before any potential angel investor walks away.
Jet needs a fortune to keep opperating! How much are they losing per day? What is there total negative value?
This could be quite the election shock. I see no reason for EY to throw good money after bad on the current offered terms.
Could they just be trying to ensure Goyal takes the blame? It doesn't cost more than hotel and executive pay to keep talking.
Why do you say certainly not a board seat? He will have 20% after dilution and is probably one of the bigger shareholder. I think he will retain his board seat. But so what. That is just vanity. Board seats do not have operating control and one vote can't make the board do things you want. I predict he will have his face saving board seat but will be totally out of management and will have EY forcing him to vote with them on critical board votes.
And "election shock" - I mean the hyperbole on Indian posts is amazing. Btw with EY driving a tough bargain (or being unreasonable) and Goyal driving a tough bargain (or being unreasonable), at some point the govt should stop in. Aviation is national security and India would not benefit from having Jet go down in flames. A managed sell off, sure but not stop flying tomorrow.