Indian price range airline SpiceJet informed a court docket on Thursday it was “struggling to remain afloat”, because it was ordered to make a fee to its former proprietor over cash owed.
In 2018 SpiceJet misplaced an arbitration case arising out of share transfers from former proprietor Kalanithi Maran to the corporate’s new administration in 2015, making the airline liable to pay $70 million plus curiosity. Maran later took SpiceJet to court docket saying he was nonetheless owed $48 million.
In a Delhi Excessive Court docket listening to on Thursday on Maran’s case demanding the dues, SpiceJet mentioned it was struggling financially.
“We’re struggling to remain afloat,” the airline’s lawyer Amit Sibal informed the choose.
SpiceJet provided to deposit 750 million rupees ($9.08 million) inside 10 days, however the choose ordered the airline to pay 1 billion rupees ($12 million) by Sept. 10 and warned it may take into account seizing the corporate’s property to get better the dues, if it fails to conform.
SpiceJet mentioned in an announcement it could honour the court docket order and “make the required fee inside the prescribed timeframe.”
The order comes days after India’s Supreme Court docket, in a separate case, requested SpiceJet’s Managing Director Ajay Singh to seem in court docket and defend allegations by Credit score Suisse claiming sure unpaid dues.
Each the Delhi Excessive Court docket case and the Supreme Court docket case will subsequent be heard on Sept. 11.
SpiceJet this month reported its highest quarterly revenue in 4 years, helped by a pointy drop in bills as a consequence of fewer flights operated. SpiceJet has additionally been scrambling to lift funds and restore operations for a few fourth of its fleet, which has been grounded amid battles with its lessors over funds, as competitors heats up fiercely within the sector.
Whereas India’s greatest service IndiGo and Tata group-owned Air India have a whole lot of recent planes on order, one other price range airline, Go First, filed for chapter in Could.
(Apart from the headline, this story has not been edited by Ednbox workers and is printed from a syndicated feed.)