India's troubled Jet Airways said yesterday that founder Naresh Goyal has stepped down as chairman and left the company board as part of a rescue plan. Jet, which has debts of more than $1 billion, said in a statement that its creditors would inject up to $218 million of "immediate funding support" into the airline. Its shares soared 13 percent in Mumbai.

Indian media reports said that Goyal's stake in Jet will fall to half the current 51 percent. The statement said it would also issue 11.4 million new shares.

The Mumbai-based carrier, which until turbulence recently was India's second biggest airline, has been forced to ground three-quarters of its 119-aircraft fleet. This is because it was unable to pay aircraft lessors. Its pilots have also complained of delays in receiving their salaries, while the firm also defaulted on loan payments.