India’s SpiceJet raises on report of likely $122m government loan

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BENGALURU, Oct 6 (Reuters) – Shares of SpiceJet Ltd (SPJT.NS) jumped 9% on Thursday following reports that the Indian budget carrier is set to receive an additional loan of 10 billion rupees (122.7 million) under the government’s amended emergency line of credit. Guarantee scheme.

On Wednesday, the government raised the maximum eligible loan amount for airlines under the scheme to 100% of their outstanding loan to help companies overcome cash flow problems.

The funds will help the airline pay dues, pay lessors on time and install new Boeing 737 Max planes, the Business Standard newspaper reported, citing sources.

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The airline is currently operating less than 50% of its licensed flights, following an order from the Directorate General of Civil Aviation due to multiple incidents involving its aircraft. Read more

Spicejet did not immediately respond to a Reuters request for comment.

Bankers have also been contacted to raise $200 million, Mint reported, citing an airline official.

The report comes two weeks after the aviation safety watchdog extended a restriction on SpiceJet flight departures until October 29. read more

As of 0514 GMT, the carrier’s shares were up 6.1% at 40.8 rupees. The stock posted its biggest intraday percentage gain since Aug. 5.

($1 = 81.5150 Indian rupees)

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Reporting by Navamya Ganesh Acharya in Bengaluru; Editing by Savio D’Souza and Sherry Jacob-Phillips

Our standards: The Thomson Reuters Trust Principles.

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