Saturday, December 20, 2014

Investors told to put Rs 200 crore into SpiceJet by year-end

New Delhi: The government has asked troubled SpiceJet's potential investors, led by co-founder Ajay Singh, to put in at least Rs 200 crore into the airline by the year-end. Singh, who had sold his stake to current promoter Kalanithi Maran in 2010, is planning to pump in about Rs 1,300 crore along with a couple of global PE funds and re-acquire the airline.

"We have told the potential investors that they must translate their words into action very fast. We have asked the Airports Authority of India not to put SpiceJet on cash-and-carry for some time and this arrangement cannot go on endlessly," said a senior official. The low-cost carrier (LCC) needs about Rs 2,000 crore in all, with Rs 1,400 crore required immediately to clear dues.
According to sources, Singh-led investors are doing due diligence of SpiceJet, a process that will take some time. Singh has helped SpiceJet get some funds because of which the airline was able to operate 218 flights on Thursday and close to 230 on Friday.
20/12/14 Times of India
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