SpiceJet Seeks Extension for ₹144 Crore Deposit Amid Financial Struggles
Maran case: SpiceJet asks for more time to deposit Rs 144 cr
The Economic Times
Image: The Economic Times
SpiceJet, facing financial difficulties, has requested a four-week extension from the Delhi High Court to deposit ₹144 crore in an arbitration dispute with former promoter Kalanithi Maran. The airline proposes offering a land parcel in Gurugram as security, citing the impact of rising fuel prices and the West Asia crisis on its operations.
- 01SpiceJet is requesting a four-week deferment to deposit ₹144 crore in an arbitration dispute.
- 02The airline proposes using a land parcel in Gurugram as security, valued at ₹400-500 crore.
- 03SpiceJet's chairman stated that immediate compliance could jeopardize operations and lead to further financial decline.
- 04The aviation sector is currently facing challenges due to rising fuel prices and geopolitical tensions.
- 05The government is reportedly considering a support package for the aviation industry.
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SpiceJet, the Indian budget airline, has informed the Delhi High Court that it would collapse if required to deposit ₹144 crore immediately in an arbitration case involving former promoter Kalanithi Maran and KAL Airways. The airline's chairman, Ajay Singh, emphasized the dire financial situation, exacerbated by rising aviation turbine fuel prices and the ongoing crisis in West Asia. SpiceJet has proposed offering a land parcel in Udyog Vihar, Gurugram, valued between ₹400-500 crore as security, although this offer was previously rejected by the court due to claims that the property is mortgaged. Senior counsel Mukul Rohatgi argued that immediate compliance with the court's order would disrupt operations and negatively impact employees and passengers. SpiceJet has also appointed real estate advisory firm CBRE to facilitate the sale of the property, which may take up to six months. The court will continue hearing the matter on Wednesday.
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If SpiceJet is unable to meet the deposit requirement, it may lead to operational disruptions, affecting flights and jobs within the airline.
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