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Tuesday, 20 January 2015

Maran to exit SpiceJet, hand over control to co-founder Ajay Singh

New Delhi: The ownership and control of embattled SpiceJet will go back in the hands of co-founder Ajay Singh, with current promoter Kalanithi Maran all set to exit the low cost carrier (LCC). Ajay Singh along with a consortium of investors led by a unit of US-based JPMorgan Chase is likely to infuse a 'significant' amount of money into the LCC which requires almost Rs 1,500 crore immediately to survive.


In a BSE filing on Thursday, SpiceJet said it will "transfer the ownership, management and control of the company to Ajay Singh pursuant to a scheme of reconstruction and revival" being filed with the aviation ministry. Maran's Sun Group, along with the billionaire personally, hold 58.46% stake in the LCC. It will transfer the entire stake to the Singh-led consortium and remain an investor with holding of warrants (convertible into 10% stake) in the carrier.

While SpiceJet did not disclose financial details of the deal, Maran's stake is worth just over Rs 500 crore. But the airline has dues of way over Rs 700 crore, which Sun Group refused to pay. The Sun Group may have to infuse about Rs 80 crore in the airline when the 10% warrants are converted. 
 Aviation ministry sources say Singh-led consortium will infuse Rs 1,500 crore into the LCC, making it the first crisis-ridden airline in recent years to come back from the brink. 
15/01/15 Times of India

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