Struggling India airline Spicejet said its top shareholder Ajay Singh will inject INR5 billion ($60.85 million) to help its financial plight.
The cash-strapped carrier has been desperate for additional funds to pay lessors and get grounded planes in the air again.
The airline was this week reportedly put on watch by the aviation regulator due to its dwindling cash reserves.
About one quarter of its fleet is currently grounded.
Singh will receive shares, convertible securities or share warrants.
With the cash infusion, Spicejet will be able to borrow extra funds under the government’s emergency credit line guarantee scheme.
Singh owns a 50.6% stake in the company.
“This investment will allow the airline to accelerate its growth plans and capture new opportunities in the market,” Singh said.
Spicejet has been trying to fend off aircraft lessors which want to repossess planes.
