The Delhi High Court has issued a directive to budget carrier SpiceJet, instructing the airline to make a payment of $4 million to its engine lessors, Team France 01 SA and Sunbird France 02 SAS, by February 15. The lessors are entitled to receive a total of $11 million from SpiceJet. The carrier proposed paying $1 million upfront and the remaining amount in a staggered manner, seeking additional time for the payment.
SpiceJet informed the court that it has returned three out of four engines, with only one currently in use. The lessors, expressing dissatisfaction with the airline’s payment history, have requested the grounding of the aircraft, citing the leniency they have shown towards SpiceJet despite minimal payments from the carrier.
In the event of a default, the lessors suggested a 10-day grace period within which the engine should be grounded. They further updated the court on receiving the first tranche of $90 million and the impending arrival of the next tranche of $4 billion in cash.
The case is scheduled for the next hearing on February 22, 2024.
In related financial developments, SpiceJet recently completed raising approximately Rs 744 crore through the allotment of shares and warrants as part of its refinancing plan. This initiative is part of the carrier’s broader plan to raise fresh capital of Rs 2,250 crore, as approved by its board in December. The funds are expected from various sources, including financial institutions, foreign institutional investors, high-net-worth individuals, and private investors.
On Monday, SpiceJet announced that it successfully secured Rs 160 crore through the Emergency Credit Line Guarantee Scheme (ECLGS). According to reports, the airline has managed to secure funding exceeding Rs 1,100 crore within the past three months. With plans to participate in the bidding process for the insolvent Go First, SpiceJet intends to seek additional funds to reinforce its financial position.
As of now, SpiceJet operates a fleet of around 40 aircraft.
Disclaimer: The views and investment tips expressed by investment experts on Sharepriceindia.com are their own and not those of the website or its management. Sharepriceindia.com advises users to check with certified experts before taking any investment decisions.
