New Delhi: Budget airline SpiceJet Ltd is in dire need of funds, but all resource taps seem to have been turned off.
Sources, who did not want to be named, said in the latest development, the crisis-ridden carrier is finding it difficult to get funds that were to come from promoter Kalanithi Maran because of the recent arrest of Sun Group officials by the Central Bureau of Investigation (CBI). One of the arrested executives is a signing authority for all financial transactions at SpiceJet.
The fund from Maran is being sought as haircut by co-founder of SpiceJet Ltd Ajay Singh as agreed upon in a pact, which was done for in-principle transfer of ownership of the airline to the later.
Haircut is a percentage that is subtracted from the market value of an asset that is being used as collateral.
It is, however, not clear why Marans need to infuse the money in the airline.
In the revival plan submitted to civil aviation ministry, Singh has committed to infuse Rs 100 crore by January 25 and another Rs 300 crore by February 25. This money is expected to flow in the airline through haircut amount of Rs 400 crore paid by Maran.
However, getting this amount from Maran is proving to be a daunting task.
30/01/15 Devina Sengupta/Praveena /Daily News & Analysis
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Sources, who did not want to be named, said in the latest development, the crisis-ridden carrier is finding it difficult to get funds that were to come from promoter Kalanithi Maran because of the recent arrest of Sun Group officials by the Central Bureau of Investigation (CBI). One of the arrested executives is a signing authority for all financial transactions at SpiceJet.
The fund from Maran is being sought as haircut by co-founder of SpiceJet Ltd Ajay Singh as agreed upon in a pact, which was done for in-principle transfer of ownership of the airline to the later.
Haircut is a percentage that is subtracted from the market value of an asset that is being used as collateral.
It is, however, not clear why Marans need to infuse the money in the airline.
In the revival plan submitted to civil aviation ministry, Singh has committed to infuse Rs 100 crore by January 25 and another Rs 300 crore by February 25. This money is expected to flow in the airline through haircut amount of Rs 400 crore paid by Maran.
However, getting this amount from Maran is proving to be a daunting task.
30/01/15 Devina Sengupta/Praveena /Daily News & Analysis
