Interesting news today of INR 100 crs paid back by Spice Jet to CUB. This transaction was executed by CUB in 2012 when Maran’s were owners of Spice Jet. This puts curtains to perhaps the largest trade done by CUB and gone awry. However, it now has ended well for CUB. There would be reversals of the provisions on the transaction. The key is to observe if all the provisions would be reversed by CUB or they would be used for Agri subvention mismatch or “future provisions” provisions created.
In my considered assessment, this transactions gives CUB a rare confidence booster in playing “not so big boys” game. Do they capitalise on this – only time will tell;
Discl: Invested
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