Deal with Ross is ‘alive’, says SpiceJet

Mumbai: Budget carrier SpiceJet, which received an $80-million investment commitment from billionaire investor Wilbur Ross last month, has said the company was not in talks with any other investor. There were reports that Vijay Mallya-owned Kingfisher Airlines may be investing in the company following a delay in the transaction with Ross. The deal with Ross is “alive” and will be concluded within a few weeks, said SpiceJet sources.
“Nothing has gone wrong since we announced the deal with WL Ross last month. The delay, if there is any, is normal,” said the SpiceJet spokesperson. Ajay Singh, director of SpiceJet and owner of about 4% stake in the low-cost carrier, could not be contacted. He did not reply to text messages also. Last month, American PE firm WL Ross & Co, promoted by Ross, had announced an investment of $80 million in SpiceJet. The fund infusion is aimed at clearing the budget carrier’s debt as well as meeting its working capital requirements. SpiceJet owes about Rs 55 crore to its creditors.
Analysts said a deal with Kingfisher might put a question mark on the identity of SpiceJet and, therefore, the SpiceJet management would not allow it to happen.
09/08/08 Economic Times

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Categories: SpiceJet Aug 2008