SpiceJet CMD Says No Question Of Filing For Insolvency, Efforts On To Revive Grounded Fleet

SpiceJet said it is taking steps to revive its grounded fleet using the $50 million it received from the government's Emergency Credit Line Guarantee Scheme (ECLGS) and internal cash accruals

The NCLT on Monday issued a notice to SpiceJet on a petition filed by an aircraft lessor seeking initiation of insolvency proceedings against the carrier and the next hearing is scheduled for May 17.

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Indian budget carrier SpiceJet said on Thursday said it is taking steps to revive its grounded fleet using the $50 million it received from the government's Emergency Credit Line Guarantee Scheme (ECLGS) and internal cash accruals, as it sought to quash rumours of insolvency.

Despite the recent turbulence in the aviation market, SpiceJet has said it had no intentions of filing for insolvency and was focused on its business, according to a statement issued by the airline.

The carrier was actively engaging with investors to raise funds and put itself back on track, it said in a regulatory filing.

"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," Chairman and Managing Director Ajay Singh said. "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," Singh added.

Last week, the budget carrier had announced plans to revive 25 grounded aircraft that will help it capitalise and make the most of the upcoming peak travel season.

The National Company Law Tribunal (NCLT) on Monday issued a notice to SpiceJet on a petition filed by an aircraft lessor seeking initiation of insolvency resolution proceedings against the budget carrier and the next hearing is scheduled for May 17, the PTI reported. The petition was filed by Aircastle (Ireland) Ltd.

According to the PTI report, a two-member Principal bench of the NCLT headed by President Ramalingam Sudhakar issued the notice to SpiceJet and directed to list the matter on May 17 for the next hearing. A SpiceJet spokesperson said that in the Aircastle issue, notice was issued in normal course. "There was no adverse ruling against SpiceJet. The court has recognised the fact that parties are under settlement discussions and they can continue to pursue the same," he said.