The SpiceJet board will meet on July 12 to discuss options for raising additional funding

10 Jul 2023 , 12:56 PM

SpiceJet announced in a statement to the exchanges on Monday that the board will meet on Wednesday, July 12, to discuss alternatives for raising new capital through the issue of equity shares and/or convertible securities on a preferential basis.

According to the filing, the board’s approval will be subject to shareholder approval and any other regulatory approvals.

SpiceJet reaffirmed and reassured investors in May that despite its financial difficulties, it has no intention of declaring bankruptcy.

There is absolutely no consideration of declaring bankruptcy. Any rumours about it are absolutely unfounded. Ajay Singh, Chairman and Managing Director, was cited as stating in a media release, ‘We are focused firmly on reviving our grounded fleet and getting more and more planes back into the air.

Two Boeing 737s and two Q400s, which were among the budget carrier’s four grounded aircraft, were brought back in June.

The airline also recently disclosed that it has cleared all outstanding debts related to the Q400 aircraft that Nordic Aviation Capital (NAC), a significant lessor of its Q400 fleet, had leased to SpiceJet. Currently, the airline has five NAC Q400 aircraft in its fleet.

About 250 flights per day are offered by SpiceJet to 48 locations both domestically and abroad. The company had then disclosed that its fleet is made up of a variety of aircraft, including Boeing 737 Max, Boeing 700, and Q400s.

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