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Tuesday, 20 January 2015

SpiceJet to get extension for AAI dues till Jan-end

New Delhi: In a reprieve for troubled low-cost carrier SpiceJet, the government has decided to extend the credit period for its dues to state-run Airports Authority of India (AAI) till the end of January, after the airline gives a revival plan with details of fresh investment on Thursday, say senior civil aviation ministry officials.

The carrier is also expected to give an investment plan to the Securities and Exchange Board of India (Sebi), with new investors, led by founder-promoter Ajay Singh, seeking a waiver from an open offer.
Industry sources said Ajay Singh, along with private equity investor JP Morgan, was expected to acquire stake of about a 25 per cent in SpiceJet and pump in about Rs 600 crore to revive the airline. At Wednesday's closing share price of Rs 18.10 on BSE, 25 per cent stake is worth Rs 242 crore.  "The stake sale deal has largely been agreed to and is close to being signed by the stakeholders. Once we are sure the funds are coming, we will extend the credit period for AAI dues to January-end. The government does not want to be seen as doing any more to help a private company," said a ministry official.
14/01/15 Roudra Bhattacharya/Business Standard

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