Wilbur Ross appointed as Director on SpiceJet board, SpiceJet 3Q results

SpiceJet on Monday said Mr Wilbur Ross has been appointed director on the board of the company, along with Mr Ranjeet Nabha, of the private equity firm led by the billionaire investor.

“Mr Wilbur Ross and Mr Ranjeet Nabha of WL Ross & Co LLC have been appointed as directors on the board of the company with effect from January 31, 2009,” the company said in a filing to the Bombay Stock Exchange.

This development follows an investment of $80 million (about Rs 345 crore) the PE firm had made in the carrier last July. It was aimed at clearing the budget carrier's debt as well as meeting its working capital requirements.

Mr Ross holds foreign currency convertible bonds that can be converted into equity by December 2010. If he chooses to exercise his option, he could become owner of up to one-third (up to 32 per cent) of carrier SpiceJet by the next year. Government regulations currently allow only up to 49 per cent foreign direct investment and 100 per cent investment by a non-resident Indian through the automatic route. - PTI

SpiceJet also informed the Bombay Stock Exchange its unaudited financial results for the quarter ended December 31, 2008. SpiceJet shares have dropped 4.57% to INR 13.36 since opening this morning.

SpiceJet has made a small operating profit after tax of Rs. 8.17 million, but has taken a one-time charge of Rs. 188 million to settle on-going litigation with erstwhile promoter S.K. Modi, when the airline was ModiLuft.

For the 9 months ended December, the airline is still suffering from the oil shock and cumulative loss for the year stands at Rs. 3.48 billion (approx $69 million).

Obtain the full financial results here.