India's SpiceJet likely to raise $120 mln-$144 mln fresh capital - ET Now (updated)

Spicejet

07/12/2023 08:40

(adds details, background from paragraph 2, shares in 3)
       BENGALURU, Dec 7 (Reuters) - India's troubled domestic
airline SpiceJet  SPJT.BO  is likely to raise 10 billion
rupees-12 billion rupees ($120 million-$144 million) in fresh
capital to pay pending salaries and revive its grounded fleet of
25 aircrafts, local TV channel ET Now reported on Thursday. 
    The budget carrier will consider raising capital through an
issue of equity shares or convertible securities on a
preferential basis on Dec. 11, SpiceJet said in an exchange
filing on Wednesday. 
    Shares of the company jumped 20% to a 16-month high of 52.30
rupees, after the report. 
    SpiceJet did not immediately respond to a Reuters' request
for comment. 
    The carrier has been scrambling to raise funds and restore
operations for a part of its fleet that has been grounded amid a
string of weak quarterly results and fierce competition in the
sector.
    In August, SpiceJet told a court that it was "struggling to
stay afloat", as it was ordered to repay money to its former
owner, Kalanithi Maran. 
    In September, the airline made a $1.5 million payment to
Credit Suisse after India's top court order in a separate case.
The Supreme Court granted six months' time to the company to
clear arrears of $3 million in the subsequent hearing.
    Credit Suisse and SpiceJet have been engaged in a legal
dispute since 2015 over the bank's claim over unpaid dues of
around $24 million.
        
  

 (Reporting by Manvi Pant in Bengaluru; Editing by Mrigank
Dhaniwala)
 ((Manvi.Pant@thomsonreuters.com; +918447554364;))