New Delhi: Talks on rescuing SpiceJet, said to involve fund infusions of about Rs 1,200 crore from new investors, have got stuck over the servicing of liabilities to the tune of Rs 700 crore, people familiar with the development said.
Negotiations to bail out the financially struggling carrier are taking place between representatives of current controlling stakeholder Kalanithi Maran on the one side and former promoter Ajay Singh and a unit of JPMorgan Chase on the other. The two sides will hold a crucial discussion on the debt-servicing issue on Monday
The Rs 700-crore liabilities include Rs 400 crore that SpiceJetBSE -1.13 % raised through advance bookings till August and the rest consists of dues to airport operators and others.
"While the process for the stake sale is on, the Marans have been asked to service these liabilities of the company before the new owners come in. Negotiations are on and something is expected on the same on Monday," said one of those cited above.
05/01/15 Mihir Mishra/Economic Times
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Negotiations to bail out the financially struggling carrier are taking place between representatives of current controlling stakeholder Kalanithi Maran on the one side and former promoter Ajay Singh and a unit of JPMorgan Chase on the other. The two sides will hold a crucial discussion on the debt-servicing issue on Monday
The Rs 700-crore liabilities include Rs 400 crore that SpiceJetBSE -1.13 % raised through advance bookings till August and the rest consists of dues to airport operators and others.
"While the process for the stake sale is on, the Marans have been asked to service these liabilities of the company before the new owners come in. Negotiations are on and something is expected on the same on Monday," said one of those cited above.
05/01/15 Mihir Mishra/Economic Times
