Spicejet shareholding shifts ahead of restructuring

Spicejet’s former majority shareholder, Kalanithi Maran, has resigned from the airline’s board with immediate effect according to a filing with the Bombay Stock Exchange, as reported in Indian media.


Spicejet shareholding shifts ahead of restructuring


Spicejet’s former majority shareholder, Kalanithi Maran, has resigned from the airline’s board with immediate effect according to a filing with the Bombay Stock Exchange, as reported in Indian media. Kavery Kalanithi and S. Natrajhen’s resignations were also announced late last week following a board meeting to approve Ajay Singh’s acquisition of a 58.46 per cent share in the airline.

In preparation for it’s state-sanctioned restructuring drive, the cash-strapped airline will also increase its authorised share capital to INR20 billion (US$322.1 million) to raise INR15 billion (US$241.6 million) in liquidity for the ailing carrier. Singh, who is expected to team up with JP Morgan Chase and Co. and a local investor, is expected to invest at least INR14billion (US$221.2 million) into Spicejet by the end of April.

Spicejet is reportedly in talks with aircraft lessors which last week moved to repossess up to eleven B737-800s amid concerns about the carrier’s future.

India’s Economic Times says the talks focus on six B737-800s Spicejet wants to retain ahead of the busy summer season. The plan is to increase its daily flights by almost 30 per cent to 280 within three months.