Team Blitz India
Ajay Singh, promoter of cash-strapped private airline SpiceJet, is looking to raise around $100 million, according to news reports. He is said to be in talks with global credit funds for this.
The funds will reportedly be used to infuse fresh equity in the airline and also refinance a part of the promoter debt, Moneycontrol reported, citing sources privy to the development.
“Several global funds are in discussions and talks are focussed around the pricing of the loan, which is likely to be structured credit transaction,” the publication quoted one of the sources as saying.
SpiceJet is yet to issue a statement in response to the report. The development comes at a time when India’s aviation sector is showing signs of improvement, and analysts are pointing out that the prospects of SpiceJet have turned brighter following the grounding of bankruptcy-hit carrier GoFirst.
In the first quarter of 2023-24, SpiceJet reported a standalone net profit of Rs 204.56 crore, against a net loss of Rs 788.83 crore in the same quarter last fiscal. Even as the low-cost airline turned profitable, the impending dues and legal challenges could spell trouble if it fails to raise funds, experts underline.
The budget carrier, on November 20, told the Delhi High Court that it risks insolvency if compelled to pay an additional Rs 100 crore to former promoter Kalanithi Maran, and instead proposed an equity issuance to settle his dues
