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SpiceJet not aware of changes to Dubai World's impact on Istithmar group; may affect WL Ross

30-Nov-2009 10:42 AM

SpiceJet reportedly announced it is unaware of plans by Dubai World’s Istithmar to alter its investment strategy in the Indian carrier, in which it owns a 13% stake (Reuters, 27-Nov-2009). Dubai World last week announced a deferral of repayments on its massive debt. There is some concern that if Istithmar liquidate its interest in SpiceJet, major shareholder, W.L. Ross' financial options might be affected. After its initial investment in SpiceJet in 2005, Istithmar increased its holding through an issue of Foreign currency Convertible Bonds and has been engaged on continuing, unresolved, discussions about the appropriate exchange rate.