SpiceJet shareholders gave the nod to re-appoint Ajay Singh as Director

Ajay Singh will be reappointed as a Director of SpiceJet on Monday, December 26, with the support of the airline’s shareholders.

Singh resigned from his position as director on August 27, 2010, having been initially appointed on November 4, 2004. After that, on May 21, 2015, he was chosen to serve as the organization’s managing director. Singh currently serves as the airline’s Chairman and Managing Director. 

The re-appointment of Singh as a director who is eligible to retire through rotation was approved by the shareholders with the necessary majority, the carrier claimed in a regulatory filing.

SPICEJET
The re-appointment of Ajay Singh as a Director was approved by the shareholders with the necessary majority

The shareholders approved the acceptance of the audited financial accounts for the fiscal year ending March 31, 2022, at the annual general meeting as well.

Due to the negative effects of high fuel prices and rupee devaluation, the low-cost carrier, which is dealing with numerous challenges, posted a net loss of 789 crore rupees in the June quarter.

The airline’s shares increased by about 7% on Monday, December 26, closing at 37.85 on the BSE. On December 23, SpiceJet stated that, subject to adhering to statutory procedures and receiving the necessary permissions, it continues to investigate various options for the settlement of its unpaid debts with its creditors in order to normalise its responsibilities.

According to the conditions of the financial facilities it had accessed from them, the company had said in a regulatory statement that the transfer of the cargo business venture was ongoing while it awaited final lender clearance.

The transfer of the cargo business venture, along with its associated assets and liabilities, to the company’s subsidiary SpiceXpress and Logistics Pvt Ltd, had already received approval from the company’s shareholders.

Also read: SpiceXpress spin-off is now approved by the creditors of SpiceJet

With the introduction of SpiceXpress & the transfer of business under this process will help SpiceJet significantly strengthen its balance sheet and wipe out the negative net worth of its business.

At the beginning of December, the airline concluded a number of settlements with the majority of the major partners, including manufacturers and lessors, according to Ajay Singh’s statement in the airline’s annual report for the 2021–22 fiscal year. 

Also read: SpiceJet aims to pay off aircraft lessors’ outstanding debts by converting them into investors

“The sky-high fuel prices, depreciating rupee, erratic passenger demand and disrupted supply chains have deferred growth plans and expanded losses.”

“Our logistics business has been valued at ₹25,557.7 million and the transfer of business under this process will help us significantly strengthen our balance sheet and wipe out the negative net worth of our business.”

“We expect to see improvement in operations and restructuring benefits will be visible starting Q3 FY2023.”

–Ajay Singh, To Be Director, SpiceJet
SPICEJET
Improvement in operations and restructuring benefits will be visible for SpiceJet starting Q3 FY2023 -Ajay Singh

The Spicejet is also negotiating with investment bankers to raise up to USD 200 million in order to realise its future plans and the expansion of the Emergency Credit Line Guarantee Scheme (ECLGS) to 1,500 crores will significantly contribute to the sector’s much-needed stability. 

Also read: SpiceJet anticipates improved operational results and restructuring advantages in the December quarter; the ICAO audit confirms SpiceJet’s credentials as a safe airline

It has also finished a series of settlements with a majority of its main partners including manufacturers and lessors paving the basis for its seamless growth and expansion. The additional monies will allow SpiceJet to normalise its obligations, unground its fleet, and induct new planes into the fleet.

Ajay Singh, who will become the new director of SpiceJet might bring out all the necessary changes to make the airline flourish. 

(With inputs from TOI)

Responses

Feed
Jobs
News
Magazine