No question of filing for insolvency, focused on reviving grounded fleet: SpiceJet CMD

Amid the looming uncertainities in the aviation sector, SpiceJet's Chairman and Managing Director Ajay Singh has clarified that there is no question of SpiceJet initiating insolvency and any such rumour is completely baseless.

“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.

SpiceJet has already initiated the process of reviving its grounded fleet with the $50 million funds that the airline received from the government’s Emergency Credit Line Guarantee Scheme (ECLGS) and internal cash accruals.

The airline in a regulatory filing said that the company is actively engaging with investors to raise funds and put itself back on track. However, earlier this month, SpiceJet's aircraft lessor Aircastle had filed a case at the National Company Law Tribunal seeking initiation of an insolvency process against the airline for non-payments of dues.

Similarly its lender Credit Suisse too moved the Supreme Court and alleged that SpiceJet had failed to pay dues that were part of a settlement. However, as per Mint, the airlines replied that the settlement amount is subject to the Reserve Bank of India‘s approval, and the airline could not begin payments as per the schedule. It had told the court that it made the April payment on schedule, and the payment for May will also be made as per schedule.