Ministry of aviation tells SpiceJet and prospective investors to present funding plan to get relief


By Mihir Mishra, ET Bureau | 27 Dec, 2014, 


The civil aviation ministry has asked Ajay Singh, the Spice-Jet management and prospective investors such as JPMorgan to present a detailed fundraising plan. It has linked the extension of a grace period for overdue payments by the airline to the presentation of such a plan. 

Ministry officials said that the request of the airline and the prospective investors for extension of a grace period to pay airport operators can only be considered after they submit a robust plan detailing investments and cash flows. 

The 15-day payment breather given to SpiceJetBSE 9.07 % by airport companies ends on December 31, 2014. The oil companies have not agreed to give SpiceJet any extra day for making payments. 

Government sources inform that the airline wants breather from payment of airport and other charges beyond December 31, 2014. "The process to get funds, according to them, is going to take about eight weeks and they want the breather to be extended till then. All that decision will only be taken after they submit a detailed fund infusion plan and cash situation plan," said the official. 

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