SpiceXpress To Get USD 100 m from UK Group, Signs MoU

May 15—SpiceJet subsidiary, SpiceXpress and Logistics will receive USD 100 million investment from a UK-based SRAM & MRAM Group. Recently, the airline hived off SpiceXpress as the company is facing financial headwinds and an insolvency plea by an aircraft lessor.

"The hive-off would strengthen SpiceJet's balance sheet, wipe out a substantial portion of the Company's negative net worth and unlock significant value for the Company and its shareholders," the company had said.

Last week, the airline said it has no plans to file for insolvency and would invest USD 50 million to revive 25 grounded planes. The United Kingdom-based SRAM & MRAM Group will invest USD 100 million in SpiceXpress, PTI reported.

In an official statement, SpiceJet on Monday said that both sides have signed a Memorandum of Understanding (MoU). It comes after a debt restructuring agreement between the carrier and aircraft lessor Carlyle Aviation Partner wherein the latter bought a stake in SpiceXpress at an anticipated future valuation of USD 1.5 billion ( INR12,422 crore).

Ajay Singh, SpiceJet Chairman and Managing Director said the USD 100 million investment should help SpiceXpress to grow further and expand and provide a more streamlined and efficient service to its customers, as per PTI reports.

SRAM & MRAM Group has interests in agricultural and agro-food products, neural networks, artificial intelligence, hedge fund management, hospitality services, and solutions, media, and publishing, among other areas.

So far this month, lessors have sought the deregistration of five SpiceJet planes, a development that also comes against the backdrop of crisis-hit rival Go First shuttering operations and going for resolution proceedings under the insolvency law.

(With PTI inputs)

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