Former SBI chairman AK Purwar likely to be the new Jet Airways chairman: Sources

New Delhi: Former chairman of State Bank of India (SBI) AK Purwar may be named the new Jet Airways chairman, sources told Zee Media.

Purwar is also the front-runner for being named the independent board member. Another prominent name doing the round is former Jet board member Srinivasan Vishwanathan, sources said.

The Jet Airways board is expected to meet soon and make announcements regarding the new changes after an interim management is being formed after founder Naresh Goyal along with his wife stepped down from the Airline's board.

On March 25, Naresh Goyal and his wife announced to quit from Jet Board. Goyal who set up the company with his wife in 1993, would also cease to be the chairman, the filing said.

Jet said that a resolution plan is being formulated by a  consortium of domestic lenders led by State Bank of India in accordance with the guidelines set out under the Reserve Bank of India on.

Under this, an Interim Management Committee will be constituted at the instructions of the Lenders to manage and monitor the daily operations and cashflow of the Company. The formation of an interim management is expected this week.

Jet, battling acute financial woes estimated to be more than Rs 8,000 crore, is looking at all possible options. The liquidity crunch has not only forced the Airline to ground aircraft leading to cancellation of several flights, it has also caused delayed salary payments to its pilots, engineers and other senior staff.

Jet said said there will be immediate funding support of upto Rs 1500 crore by lenders for the cash-strapped airline will be made. The board has also approved issue of 11.4 crore equity shares to the Airline's lenders upon debt to equity conversion of Re 1/ of the outstanding debt.