Monday, September 05, 2022

SpiceJet Likely To Get Rs 225 Crore Emergency Funding This Week Amidst Struggle For Survival

Nearly a week after budget carrier SpiceJet reported a widening of net loss to Rs 789 crore and a second straight month of delay in staff salaries, there seems to finally be some relief for the struggling airline. 

Spicejet is likely to receive around Rs 225 crore this week as a part of the Emergency Credit Line Guarantee Scheme (ECLGS), ETNow reported citing sources.

SpiceJet had applied for ₹280 crore loans under the ECLGS, and now these soon-to-be-received funds will be used to clear statutory dues and lessor payments, the report said.

For the uninitiated, this scheme was launched by the central government as a special scheme in wake of Covid pandemic in 2020, and it intends to provide guarantee coverage to banks and NBFCs to enable them to extend emergency credit to various industries to meet their working capital requirements.

The low-cost airline is looking to raise up to Rs 2,000 crore through various means, including a stake sale, its largest shareholder and chairman, Ajay Singh, said last week, as per an ET report.

05/09/22 Vanya Gautam/India Times

To Read the News in full at Source, Click the Headline


Post a Comment