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'Absolutely no question of filing for insolvency': SpiceJet CEO Ajay Singh on insolvency rumours
Image credit: Wikimedia Commons

'Absolutely no question of filing for insolvency': SpiceJet CEO Ajay Singh on insolvency rumours

| @indiablooms | 11 May 2023, 09:47 pm

New Delhi: Budget airline SpiceJet has said that it is implementing measures to restore its grounded fleet by utilizing the $50 million received from the government's Emergency Credit Line Guarantee Scheme (ECLGS) along with internal cash accruals. The company aims to dispel any rumors of insolvency.

Despite the challenges faced by the Indian aviation industry, SpiceJet affirmed its commitment to its business operations and stated that it has no plans to file for insolvency.

In a regulatory filing, the airline stated that it is actively engaging with investors in order to secure funds and restore its operations on a stable trajectory.

“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.”

The National Company Law Tribunal (NCLT) issued a notice to the Ajay Singh-promoted private carrier on a petition filed by an aircraft lessor seeking initiation of insolvency resolution proceedings against it.

As per the information available on the regulator's website, three of SpiceJet's lessors, namely Wilmington Trust SP Services, Sabarmati Aviation Leasing, and Falgu Aviation Leasing, have requested the deregistration of one aircraft each.

SpiceJet recently announced that it has secured up to Rs 400 crore to reinstate 25 aircraft in its fleet that have been non-operational due to various reasons.

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