In what is indicative of a breakthrough in talks between investors for a fund infusion in SpiceJet, former promoter Ajay Singh along with partners met senior officials in the ministry of civil aviation today and apprised them of details regarding recapitalisation of cash-strapped carrier.
While a final meeting between potential investors, SpiceJet executives and civil aviation ministry officials regarding the proposed deal is scheduled to take place early next week, what added weight to Friday’s talks is that the airline mobilised some funds and renewed bank guarantees to Airports Authority of India (AAI).
Assured by the move, the government has now decided to extend the breather on payment of airport charges beyond this week. The moratorium granted to SpiceJet on making payments to the Airports Authority of India (AAI) was set to expire on Jan 10. The airline has dues of around Rs 200 crore pending with various airport operators.
A senior official in the ministry of civil aviation told The Indian Express, “All signs are positive. Flight operations are stable. They have renewed bank guarantees today. They have been making some payments. The final details regarding the investment would be closed in a meeting early next week.”
On Thursday, official sources had indicated that SpiceJet is likely to receive the first tranche of investment for recapitalisation by the end of this week, with additional fund infusion expected by the beginning of February.
Former promoter and director of SpiceJet Ajay Singh along with US bank JPMorgan Chase are understood to be considering investing about $200 million in the carrier that is struggling to stay afloat. The new investors plan to buy out the entire stake of current promoter Kalanithi Maran.
“They have assured us that they will mobilise some funds by January 8-10. This capital would be sufficient to hold on to current level of operations. The remaining resources will be in a month’s time”, another ministry official had said on Thursday.
– By Sharmistha Mukherjee