NEW DELHI: Debt-laden Spicejet on Monday denied the reports that a few banks have put their account on high -risk category. According to the reports, private lenders IDFC First Bank and Yes Bank and state-owned Indian Bank have put their loans to SpiceJet in the high-risk category in what is said to be the latest setback for the airline.
"SpiceJet would like to state that the article is absolutely false and baseless. None of our banks has put our account on high risk or alert. The same has been confirmed to us by our lenders. It is unfortunate that the story was run despite our strong denial and no official comment from any of our banks," a SpiceJet spokesperson said.
According to a report, lenders are concerned about SpiceJet’s cash flows and have held discussions seeking assurances from the Indian budget carrier, as it is behind on payments to some aircraft lessors.
According to industry sources, three SpiceJet aircraft have been deregistered by the Directorate General of Civil Aviation (DGCA), after their lessor Dubai Aerospace Enterprise (DAE) asked the aviation regulator for it. At the end of Q3 FY22, the company had negative retained earnings of Rs 5,453.4 crore and a negative net worth of Rs 3,830.7 crore.