Kalanithi Maran to Exit SpiceJet

Published: 16th January 2015 06:02 AM  |   Last Updated: 16th January 2015 06:02 AM   |  A+A-

BANGALORE: Troubled carrier SpiceJet will see a change in promoters as media baron Kalanithi Maran will transfer ownership to former promoter Ajay Singh, marking a surprisingly smooth exit for the former.

plane.jpgIn a filing to the Bombay Stock Exchange, the Gurgaon-based carrier stated: “The Board of Directors of the company at its meeting held on January 15, Inter- alia, has taken on record the proposal of the principal shareholder and promoter Kalanithi Maran and KAL Airways Private Limited to 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 Competent Authority, the Ministry of Civil Aviation, Government of India.” The company which has liabilities of over Rs 1,400 crore and accumulated losses of over Rs 3,000 crore is seeking investors to infuse fresh funds into the ailing carrier.

Maran has 24.2 per cent while KAL Airways has 29.2 per cent of the airline.

“The Board has further directed the company to take further steps to implement and undertake all necessary steps, including to make the appropriate application before the Ministry of Civil Aviation, Government of India, for seeking approval of the ‘Scheme of Reconstruction and Revival for the takeover of ownership, management and control of SpiceJet Limited,” the company told the bourses.

Singh and Bhupendra Kansagra, a UK-based investor had started SpiceJet in 2005. Maran acquired SpiceJet for Rs 750 crore in 2010.

Since that time Maran has infused Rs 130.92 crore in 2011-12, Rs 99.44 crore in 2012-13 and Rs 130 crore in 2013-14. The carrier owes a total of over Rs 1,550 crore to banks.

The airline which had trimmed its fleet from over 345 to 232 in recent months saw an exodus of pilots and other staff over an uncertain future for the carrier.

According to sources the new promoters are likely to trim staff strength further in the coming days as part of their restructuring plans.   

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