Wilbur Ross and Ranjeet Nabha appointed as Directors on SpiceJet board

According to a PTI report, Low-Cost-Carrier (LCC) SpiceJet announced today in a filing to the Bombay Stock Exchange (BSE) that Wilbur Ross and Ranjeet Nabha of WL Ross & Co LLC have been appointed as directors on board of the company effective since day before yesterday. This development follows an investment of USD 80 million (about Rs 345 crore) the Private Equity (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.

Ross holds Foreign Currency Convertible Bonds (FCCBs) that can be converted into equity by December 2010, if he chooses to exercise his option he can become the owner of up to one-third (up to 32 per cent) of carrier SpiceJet by next year. Government regulations currently allow only up to 49 per cent Foreign Direct Investment (FDI) and 100 per cent investment by a Non-Resident Indian (NRI) through the automatic route. The Dubai government's private equity arm Istithmar owns 13.4 per cent of the carrier, while FIIs hold about ten per cent equity in the company.