SpiceJet, which is facing financial headwinds, is likely to receive around Rs 225 crore under the government’s credit guarantee scheme next week, according to a source. Hit by high fuel prices and rupee depreciation, the budget carrier on Wednesday posted a net loss of Rs 789 crore for the June quarter and also said its board has approved raising up to Rs 2,000 crore.

On Friday, the source said the airline is expected to receive around Rs 225 crore next week under the Emergency Credit Line Guarantee Scheme (ECLGS). Under the scheme, announced in May 2020 in the wake of the pandemic to help various sectors, entities will get credit at a concessional rate of 7 per cent. On August 17, the Union Cabinet approved the enhancement in the limit of ECLGS by Rs 50,000 crore to Rs 5 lakh crore.

The additional amount is being earmarked exclusively for enterprises in hospitality and related sectors. The source also said that a new chief financial officer (CFO) is expected to join the airline next week. On Wednesday, the airline said its CFO Sanjeev Taneja had resigned. There was no immediate response from the airline on ECLGS funding.

On August 23, SpiceJet chairman and managing director Ajay Singh said the airline was doing the utmost to work through the stress that it has faced and the strategy is to raise resources. “We are doing it by way of the government-supported scheme ECLGS, getting new aircraft from Boeing and, therefore, through the SLB (sale and lease back) process, exploring options for fundraise... we are exploring all options,” he had said. Singh also said the airline was looking at investments from external parties, including airlines.

AGM date

SpiceJet on Friday said it has received an extension of up to three months for conducting its annual general meeting for the financial year ended March. The AGM for the last financial year will now be held on or before December 31. Shares of SpiceJet rose marginally to close at Rs 45.10 apiece on Friday on the BSE.

GMR Cebu stake

GMR Group on Friday said it will divest its entire 40 per cent stake in Cebu international airport in Philippines for an upfront payment of Rs 1,330 crore as well as earnouts to be received over a period of more than four years. The airport is being operated by GMR-Megawide Cebu Airport Corporation (GMCAC) and GMR Airports International BV (GAIBV) holds a 40 per cent stake in the venture. A definitive agreement has been signed between GMR Airports International BV (GAIBV) and Aboitiz InfraCapital Inc (AIC) for the divestment of stake in Cebu airport. AIC is the infrastructure arm of the Philippines-based Aboitiz Group.