NEW DELHI: Indian low-cost carrier Spicejet on Thursday said that it has no plans ‘whatsoever’ to file for insolvency.
“There is absolutely no question of filing for insolvency. Any rumour regarding the same is completely baseless,” said Ajay Singh, Chairman and Managing Director of SpiceJet.
The airline said that they want to scotch any speculation that may have arisen due to the filing by another airline. Spicejet is firmly focused on its business and remains in active talks with investors to raise funds, it added.
The Gurugram-based airline’s statement comes a day after the Delhi bench of the National Company Law Tribunal (NCLT) admitted Go First’s plea for voluntary insolvency and for initiation of Corporate Insolvency Resolution Process (CIRP) proceedings.
While Spicejet is not filing for insolvency, a few of its aircraft lessors are dragging the airline to bankruptcy court.
Ireland-based aircraft lessor Aircastle Ltd has moved the Principal Bench of NCLT to launch a bankruptcy process against the low-cost carrier. A two-member Principal bench headed by President Ramalingam Sudhakar has directed to list the matter on May 17 for the next hearing.
As per the NCLT website, two more petitions for insolvency resolution proceedings against SpiceJet are pending before it. This includes -- Willis Lease Finance Corporation filed on April 12 and the one by Acres Buildwell Private Ltd filed on February 4.
Unfazed by these developments, Spicejet has now said that they have initiated the process of reviving its grounded fleet with the $50 million funds received by the airline from the government’s Emergency Credit Line Guarantee Scheme (ECLGS) and internal cash accruals.
“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,” said Singh. “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.”
Spicejet had last week announced plans to revive 25 grounded aircraft that it believes will help them capitalise and make the most of the upcoming peak travel season.