The National Company Law Tribunal (NCLT), Delhi, issued a notice to SpiceJet on an insolvency plea on September 02, 2022. The airline company was directed to respond to it within two weeks, for not initiating insolvency proceedings against it. The case is likely to be heard next on September 30.
SpiceJet’s shares closed at 37.90 on Tuesday after they shed more than 8% in the past two sessions. The company’s shares have been on a declining trend. In the past year, its share price has decreased by 50.16%. In other words, the company has lost half of its market valuation.
The NCLT issued the notice to SpiceJet based on an application filed by Acres Buildwell Pvt Ltd, one of the operational creditors of the airlines. SpiceJet owes ₹ 3.25 crores to Acres Buildwell.
However, SpiceJet received approval for a loan under the government’s ECLGC scheme on Thursday. Further, it has received the first tranche of payment and the second tranche is expected soon. In addition, the company’s management will be raising $ 200 million.
The management has informed the employees that it would deposit the TDS of all employees in the next 2-3 weeks and credit ‘a significant portion’ of their PF contributions.
The company recorded a net loss of ₹ 789 crores in the April-June quarter as compared to a net loss of ₹ 729 crore in the corresponding period a year ago.
Recently the cash-strapped company sent 80 pilots on leave without pay for three months. Later it said that it will call them back gradually when it deploys new aircraft into its fleet. It plans to add seven Boeing 737 Max starting from December.
India’s aviation regulator has extended the eight-week period for which SpiceJet’s operations had been curtailed to half of its initially approved summer schedule. This restriction will continue till October 29, 2022.
Written by Simran Bafna
