Delhi High Court orders SpiceJet to give lessors $2 million before Feb 29

On February 22, the Delhi High Court ordered low-cost carrier SpiceJet to settle its debt to two engine lessors by February 29 by paying $2 million.

SpiceJet only paid $2 million by the deadline on February 15, despite the HC’s request on January 29 for the airline to pay $4 million by that date. In his appearance on behalf of the airline, senior attorney Sandeep Sethi informed the court that financial limitations prevented them from paying the whole sum and pleaded with it to extend the carrier’s deadline until February 29.

While the airline is not paying acknowledged dues to its lessors, senior advocate Rajshekar Rao, who represented the lessors Team France 01 SAS and Sunbird France 02 SAS, informed the court that the airline’s chairman and managing director, Ajay Singh, has personally placed a bid for the grounded airline Go First.

The Delhi High Court ordered SpiceJet to give the lessors $450,000 within two weeks in December 2023. Although the airline had made the payment, the lessors insisted on receiving further funds because of the remaining balance. Partner at Tuli & Co. Saket Satapathy briefed Rao and the lessors’ attorney, Anandh Venkatramani.

SpiceJet announced on February 22 that it had collected a further Rs 316 crore through a preferential share issuance, bringing the total amount of money raised to Rs 1,060 crore.

The financially troubled airline recently announced that it would be reducing its workforce by 10% to 15%. The first tranche of funding, which came from the preferential allotment of securities, was given to SpiceJet in January.