Aviation

SpiceJet gets a lifeline, revival package approved

DELHI

Troubled cash strapped airline SpiceJet is all set to get a breather with the ministry of civil aviation approving a revival and reconstruction plan submitted by Ajay Singh and other investors. As the plan also includes transfer and ownership of SpiceJet to new promoters, the same has been now referred to stock market regulator Securities and Exchange Board of India (Sebi) to assess whether the present plan will trigger an open offer as an open offer is triggered when 25% or more stake is acquired in a target firm

Earlier on 15 January, SpiceJet had announced that Kalanithi Maran and KAL Airways Pvt, the principal shareholder and promoters for the airline will transfer ownership, management and control of the company to co-founder Singh, who had exited the company in 2010 selling his stake.

At present, media Mughal Maran, owner of Sun TV Network Ltd and KAL Airways, holds about 59% stake in the company as per BSE data. The airline suffered a loss of Rs.245.6 crore (excluding one-off expenses) in the three months ended 30 September, down from Rs.559.5 crore in the year-ago period. As of 30 September, its liabilities exceeded its assets by Rs.1,459.7 crore.

According to Mint Research, as of September quarter, financial institutions hold 0.82% in SpiceJet. The Financial Express reported recently that SEBI would exempt the new promoters of SpiceJet from making an open offer to minority shareholders if the ministry approves the restructuring scheme.

Musafir Namah Bureau

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