The CEO of SpiceJet (SG, Delhi International) is in talks to raise up to USD100 million, according to India's MoneyControl outlet. Sources close to the negotiations claimed that Ajay Singh is in the early stages of talks with several global funds and is nutting out the pricing terms for a possible structured credit transaction.
Despite the widely reported problems SpiceJet and Singh face, including multiple active lawsuits and insolvency petitions, the low-cost carrier reported a net profit of INR2.0456 billion rupees (USD24.55 million) in the three months to June 30, 2023. The improved cash flows and return to profitability have reportedly bolstered the company’s ability to repay debt and manage its finances. The demise of competitor Go First has also benefitted SpiceJet.
In mid-2023, Singh committed to investing INR5 billion (USD60 million) in SpiceJet through fresh equity shares or convertible instruments. That contribution was also designed to assist the airline in accessing a further INR2.06 billion (USD25 million) via the Indian government's Emergency Credit Line Guarantee Scheme. However, India-based news outlets suggest that SpiceJet continues to experience financial pressure due to the ongoing legal cases, including an order to pay former majority owner Kalanithi Maran INR3.8 billion (USD45.5 million).
SpiceJet did not respond to a request for comment.
