No plans of filing for insolvency: SpiceJet
Amid stressed financials and lessors baying for its blood, the management of SpiceJet has said that it has no plans of filing for insolvency.
“There is absolutely no question of filing for insolvency. Any rumour regarding the same is completely baseless. We are focussed firmly on reviving our grounded fleet and getting more and more planes back into the air. Work on this front has already begun and the Company is using the $50 million ECLGS funds and our own cash,” said Ajay Singh, Chairman and Managing Director, SpiceJet.
Recently, Ireland-based aircraft lessor Aircastle Ltd has moved the Principal Bench of NCLT to launch a bankruptcy process against the low-cost carrier. The National Company Law Tribunal (NCLT) has also issued a notice to the airline seeking its reply. NCLT has listed the matter on May 17 for the next hearing.
SpiceJet said that in the Aircastle issue, notice was issued in the normal course and that they are in discussion with Aircastle for a settlement.
SpiceJet in a press statement said that it has initiated the process of reviving its grounded fleet with the $50 million funds received by the airline from the government’s Emergency Credit Line Guarantee Scheme (ECLGS) and internal cash accruals.
In view of the recent developments in the Indian aviation market, the airline has categorically stated that it has no plans whatsoever to file for insolvency. We want to scotch any speculation that may have arisen due to the filing by another airline. The airline is firmly focussed on its business and remains in active talks with investors to raise funds.
“We have a great relationship with all our partners. Our lessors have supported us through the thick and thin and continue to do so and we are grateful for their support and confidence.”
SpiceJet had last week announced plans to revive 25 grounded aircraft that will help it capitalise and make the most of the upcoming peak travel season.
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