Navigating Through Turbulence: Jet Airways’ Acquisition Failure And Recapitalisation Strategy

Harshika Jain, Sanjay Dhamija

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46 kali
24.10.322
658.162
Case Studies
17 B

The case discusses the dilemma faced by Naresh Goyal, promoter and chairman of Jet Airways (India) Limited. At the initial stage, Jet Airways, like many other companies in its growth phase, relied on borrowed funds to meet its investment needs. However, over-reliance on borrowed funds with just one equity infusion resulted in a high leverage ratio and an aggressive capital structure. Moreover, the company operated in a sector that was highly regulated, with competition that was cutthroat and a cost structure that was volatile. A high operating risk, coupled with high financial leverage, pushed the company into incurring losses. Having run out of cash, Jet Airways eventually defaulted on loan repayments to its lenders. Facing the eventuality of losing control of the company to lenders or to a strategic investor, Goyal was trying to figure out a way to save the company from insolvency and liquidation. It was becoming increasingly difficult for Goyal to keep Jet Airways, the company he had nurtured like a baby, airborne.

Subjek

ACQUISITION
 

Katalog

Navigating Through Turbulence: Jet Airways’ Acquisition Failure And Recapitalisation Strategy
ISSN: 2045-0621
13p.: pdf file.; 531 KB
English

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Pengarang

Harshika Jain, Sanjay Dhamija
Perorangan
 
 

Penerbit

Emerald
New York
2024

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