SpiceJet to Raise $120-144 Million to Revive Operations
Airline Seeks Funds to Pay Wages and Restart Grounded Fleet
According to a TV broadcaster on Thursday, India's beleaguered domestic airline SpiceJet is expected to raise an additional Rs 10-12 billion ($120 million-$144 million) in cash to pay outstanding wages and restart its grounded fleet of 25 aircraft.
On December 11, SpiceJet stated in an exchange filing on Wednesday, it would take into consideration raising capital via the issuing of equity shares or convertible instruments on a preferential basis.
Following the revelation, the company's shares surged 20% to a 16-month high of Rs 52.30.
A request for comment from Reuters was not immediately answered by SpiceJet.
Amidst a run of poor quarterly results and intense competition in the industry, the airline has been frantically trying to raise money and resume operations for a portion of its grounded fleet.
SpiceJet was forced to return money to its previous owner, Kalanithi Maran, and in August the airline informed a court that it was "struggling to stay afloat."
In response to an order from India's highest court in a different case, the airline paid Credit Suisse $1.5 million in September. In the next hearing, the Supreme Court gave the firm six months to pay the $3 million in arrears.
