Troubled low cost carrier SpiceJet is getting its old owner back with current promoter Kalanithi Maran exiting the airline and the management and control returning to its co-founder Ajay Singh. Singh's move makes SpiceJet the only airline to get a second life as many cash-strapped Indian airlines have shut in recent years. This list, headed by Vijay Mallya's Kingfisher, includes MDLR and Paramount.
The troubled LCC informed BSE on Thursday that current owner Kalanithi Maran and his KAL Airways,who together own 53.5% in SpiceJet, will "transfer the ownership, management and control of the company to Ajay Singh pursuant to a "scheme of reconstruction and revival for the takeover of ownership, management and control of SpiceJet Limited' to be filed before" the aviation ministry.
Ajay Singh and US-based JP Morgan are expected to pump in $250 million immediately and another $200 million in the long run. The airline had run out of cash and been cutting flights since mid-November as many of its Boeing 737s were repossessed by leasors due to non-payment of dues.
SpiceJet to get back old owner, Maran moving out - The Times of India
The troubled LCC informed BSE on Thursday that current owner Kalanithi Maran and his KAL Airways,who together own 53.5% in SpiceJet, will "transfer the ownership, management and control of the company to Ajay Singh pursuant to a "scheme of reconstruction and revival for the takeover of ownership, management and control of SpiceJet Limited' to be filed before" the aviation ministry.
Ajay Singh and US-based JP Morgan are expected to pump in $250 million immediately and another $200 million in the long run. The airline had run out of cash and been cutting flights since mid-November as many of its Boeing 737s were repossessed by leasors due to non-payment of dues.
SpiceJet to get back old owner, Maran moving out - The Times of India
