India’s SpiceJet likely to raise $120 million-$144 million fresh capital – ET Now

BENGALURU (Reuters) -India’s troubled domestic airline SpiceJet is likely to raise 10 billion rupees-12 billion rupees ($120 million-$144 million) in fresh capital to pay pending salaries and revive its grounded fleet of 25 aircrafts, local TV channel ET Now reported on Thursday.

The budget carrier will consider raising capital through an issue of equity shares or convertible securities on a preferential basis on Dec. 11, SpiceJet said in an exchange filing on Wednesday.

Shares of the company jumped 20% to a 16-month high of 52.30 rupees, after the report.

SpiceJet did not immediately respond to a Reuters’ request for comment.

The carrier has been scrambling to raise funds and restore operations for a part of its fleet that has been grounded amid a string of weak quarterly results and fierce competition in the sector.

In August, SpiceJet told a court that it was “struggling to stay afloat”, as it was ordered to repay money to its former owner, Kalanithi Maran.

In September, the airline made a $1.5 million payment to Credit Suisse after India’s top court order in a separate case. The Supreme Court granted six months’ time to the company to clear arrears of $3 million in the subsequent hearing.

Credit Suisse and SpiceJet have been engaged in a legal dispute since 2015 over the bank’s claim over unpaid dues of around $24 million.

(Reporting by Manvi Pant in Bengaluru; Editing by Mrigank Dhaniwala)