SpiceJet’s shares are expected to face continued downward pressure for the second consecutive day on September 12, following the Delhi High Court’s decision to uphold an earlier order grounding three leased aircraft engines. The legal dispute involves unpaid dues to two French lessors, Team France 01 SAS and Sunbird France 02 SAS, amounting to over $20 million.
The case, filed in December 2023, related to dues accrued over a period of more than two years, and the lessors are claiming both financial settlement and repossession of the engines. Though the court urged SpiceJet to reach a settlement, the latter said its operations would not be affected.
SpiceJet is passing through a financial crisis: outstanding liability to lessors, vendors, and suppliers stands at Rs 3,700 cr, while unpaid statutory dues have reached Rs 650 cr. Its fleet has also shrunk from an operationally healthy figure of 74 aircraft in 2019 to a mere 28 in 2024 as 36 planes were grounded due to a payment crisis.
The airline is considering raising Rs 2,500 crore in QIP in addition to Rs 736 crore from warrants and promoter funds. Despite the challenges, its stock has jumped 13 per cent in the last three months against a 7 per cent gain in Nifty 50. However, on July 28, the airline reported a 20 per cent drop in its net profit for the June quarter at Rs 70.2 crore.
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Source: Moneycontrol
News Desk
