The Delhi High Court on Monday asked budget carrier SpiceJet to pay $4 million to its engine lessors Team France 01 SA and Sunbird France 02 SAS by February 15. Seeking more time for payment, the carrier said they could pay $1 million upfront and the balance in a staggered manner.
SpiceJet is supposed to pay $11 million to the lessors. The company said that out of four engines, three have been returned and only one is in use. The lessors have sought grounding of the aircraft, saying that they have given a ‘long rope’ to the carrier and yet the company barely made any payments.
“In case of default, we can give them 10 days within which the engine should be grounded,” the lessors claimed.
It informed the HC that they have received the first tranche of $90 million and the next tranche of $4 billion in cash will be received soon.
The case will be heard next on February 22, 2024.
The low-cost airline on Friday informed that it completed raising around Rs 744 crore through allotment of shares and warrants as part of its refinancing plan. This is part of the funding plan which the cash-strapped carrier had announced in December that its board had approved raising fresh capital of Rs 2,250 crore from 63 entities, including financial institutions, foreign institutional investors, high-net-worth individuals, and private investors.
On Monday, it announced that it managed to raise Rs 160 crore through the Emergency Credit Line Guarantee Scheme (ECLGS), as per news reports. News agency PTI citing sources said that the the airline has managed to get funding worth over Rs 1,100 crore in three months.
SpiceJet, which has indicated its intent to participate in the bidding process for the insolvent Go First, will seek additional funds to strengthen its financial standing.
At present, the airline operates a fleet of approximately 40 aircraft.
“The Company is in constant discussion with Team to settle the matter and has also provided a payment plan for the same which is pending consideration. We are confident of resolving the matter,” SpiceJet spokesperson said.