SpiceJet Chairman and Managing Director Ajay Singh.
| Photo Credit: ANI
SpiceJet promoter Ajay Singh will infuse ₹500 crore into the airline by way of subscribing to fresh equity or convertible instruments, the airline said in a statement.
The decision was taken during a board meeting held on Wednesday to deliberate over options for raising fresh capital.
Additional facility
The airline added the fund infusion would enable SpiceJet to seek additional credit facilities worth ₹206 crore under the government’s Emergency Credit Line Guarantee Scheme.
A fund crunch had forced the airline to ground almost half of its 64-aircraft fleet with some aircraft lessors moving the DGCA demanding deregistration of aircraft over pending lease rentals.
The DGCA had also placed the airline under enhanced surveillance to ascertain the financial challenges didn’t impact flight safety. To add to woes, last week the Supreme Court, in a matter, ordered the airline to pay the entire arbitral amount of ₹380 crore to former promoter Kalanithi Maran.