Budget carrier SpiceJet’s shareholders have given their go-ahead to the re-appointment of Ajay Singh as a director of the airline.
Singh’s re-appointment assumes significance as the no-frills airline has been in the news for the past several months for some wrong reasons, be it reports of multiple technical snags in its planes or its deteriorating financial health.
SpiceJet is facing multiple headwinds and reported a net loss of Rs 789 crore in the June quarter due to an adverse impact of high fuel prices and rupee depreciation.
At the annual general meeting, the company’s shareholders also approved the adoption of audited financial statements for financial year ended March 31, 2022.
In a regulatory filing, the airline said the re-appointment of Singh as a director liable to retire by rotation was cleared by the shareholders with requisite majority.
At present, Singh is the Chairman and Managing Director of SpiceJet.
He was appointed as director on November 4, 2004 and subsequently resigned on August 27, 2010. Thereafter, he was appointed as Managing Director of the company on May 21, 2015.
On Tuesday, shares of the airline rose 0.26 percent to trade at Rs 37.95 apiece on the BSE.
On December 23, the budget carrier said it continues to explore various options for settlement of its outstanding dues with its creditors to normalise its obligations, subject to compliance with prescribed procedures and receipt of applicable approvals.
The transfer of cargo business undertaking is in progress and the company is awaiting final approval from its lenders as per the terms of the financial facilities availed from them, it had said in a regulatory filing.
Earlier, the company’s shareholders had approved the transfer of the cargo business undertaking to its subsidiary SpiceXpress and Logistics Pvt Ltd along with all related assets and liabilities.
