WL Ross & Co., the New York-based private equity arm of Investment co which is run by financier Wilbur Ross, joined by Goldman Sachs, to invest up to $100 million in SpiceJet Ltd. Goldman Sachs will receive equity warrants in the company.

While Ross would invest $80 million in two tranches, Goldman Sachs will release 10 per cent of $20 million immediately and the remaining over 18 months, according to a report in Mint. Ross will also be buying the entire foreign currency convertible bonds from Goldman Sachs totalling to $42.5 million as well as bonds from Dubai government’s investment group Istithmar valued at $25 million of the $37.5 million it holds in SpiceJet. The deal will not trigger an open offer as neither Goldman Sachs nor Ross would be converting their warrants into equity for some time, the report added.

“This financing is intended to give SpiceJet the staying power to get through the industry consolidation that is underway,” Ross said in a statement. “We also gain encouragement that oil prices have been abating and that the government has appointed a committee under the chairmanship of the Cabinet Secretary to recommend measures to stabilize the industry.”

SpiceJet, which operates 94 flights daily from a 15-aircraft fleet, will receive its first funding within the next two weeks, while the rest upon shareholder approval. Ranjeet Nabha and Wilbur Ross will join the board of the New Delhi based carrier.

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