Debt holds back SpiceJet as bail out stuck over servicing of Rs 700 crore liabilities


Talks on rescuing SpiceJet, said to involve fund infusions of about Rs 1,200 crore from new investors, have got stuck over the servicing of liabilities to the tune of Rs 700 crore, people familiar with the development said.

Negotiations to bail out the financially struggling carrier are taking place between representatives of current controlling stakeholder Kalanithi Maran on the one side and former promoter Ajay Singh and a unit of JPMorgan Chase on the other. The two sides will hold a crucial discussion on the debt-servicing issue on Monday


The Rs 700-crore liabilities include Rs 400 crore that SpiceJet raised through advance bookings till August and the rest consists of dues to airport operators and others. 

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