SpiceJet clears PF dues after settling GST and salary arrears following Rs 3,000 cr fundraise via QIP
New Delhi: Troubled-airline SpiceJet deposited provident dues accumulated over the past 10 months, media reports said.
This follows company’s Goods and Services Tax (GST) due payments and clearing of all unpaid salaries for its employees.
"SpiceJet is pleased to announce that within the first week of raising fresh funds through the Qualified Institutional Placement (QIP), the airline has cleared all pending salary and GST dues and has made significant progress by depositing ten months of PF dues, and the process of clearing other outstanding dues ongoing," said the low-cost airline's spokesperson, reported The Economic Times.
He said, "The Company has successfully reached settlements with multiple lessors. We remain on track with the financial and operational plan outlined in our QIP strategy."
The company settled all dues after it raised Rs 3,000 crore through a QIP that attracted major institutional investors such as Goldman Sachs (Singapore), Morgan Stanley Asia and Discovery Global Opportunity Ltd.
This development follows SpiceJet's recent resolution of a $16.7 million dispute with Engine Lease Finance Corporation (ELFC) through an amicable settlement.
According to the ET report, ELFC had claimed $16.7 million, and the settlement has been reached for an undisclosed amount, which is lower than the initial claim.
SpiceJet had also failed to deposit Rs 220 crore in tax deducted at source (TDS) from employees' salaries it had collected between April 2020 and August 2023 to tax authorities.
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