American private equity firm W L Ross & Co would invest $80 million in Delhi-based airline Spice Jet.

The investment can come either by picking up foreign currency convertible bonds (FCCBs) or by some equity of current investors and fresh equity. FCCBs, held by investors like Goldman Sachs and Istithmar, are likely to be encashed instead of converting them into shares. Ross will convert the bonds into shares and money locked against these bonds will be available to Spice Jet.

Spice Jet is seeking $100 million for its daily operations and aircraft payments to Boeing. Spicejet director Ajay Singh declined to further disclose about the deal. He said that company will not issue an open offer. According to Indian norms an open offer is required if a company acquires15 per cent stake in a publicly traded company. Ajay Singh owns 4.16 per cent in Spice jet while the Tata group holds more than six per cent stake in the airlines.

Earlier, Kingfisher’s owner Vijay Mallya was also interested in Spice Jet but he found the deal expensive and finally countered the deal. The current deal comes as a big relief to the airline as oil prices are still rising and unexpected to stabilize for the time being.