Budget carrier SpiceJet on Friday said it has cleared all its goods and services tax (GST) dues after securing fresh funding of Rs 3,000 crore. The move comes after the airline has also cleared salary dues, and also resolved its dispute with Engine Lease Finance Corporation (ELFC) through an amicable settlement.
The airline had GST dues worth over Rs 145 crore.
The payment of GST dues follows SpiceJet’s recent successful qualified institutional placement (QIP), which raised Rs 3,000 crore. The QIP attracted a diverse range of top-tier institutional investors and funds, including marquee names such as Goldman Sachs (Singapore), Morgan Stanley Asia, Tata Mutual Fund, and Discovery Global Opportunity Ltd.
Ajay Singh, chairman and managing director of SpiceJet, said, “We are proud to have cleared all GST dues, a significant step towards reinforcing our commitment to financial discipline and regulatory compliance. These developments reflect our commitment to providing exceptional service to our passengers while positioning ourselves strategically for the future.”
On September 24, SpiceJet announced it had resolved its dispute with Engine Lease Finance Corporation (ELFC) through an amicable settlement. ELFC had previously claimed $16.7 million, and the settlement has been reached for an undisclosed amount, which is lower than the initial claim. This resolution marks another significant step towards strengthening SpiceJet’s financial health.
According to media reports, SpiceJet has also cleared all pending salary dues of its employees after securing a fresh capital infusion of Rs 3,000 crore. The salaries for July and August for all employees, as well as the remaining June salaries for those who were partially paid, were deposited into their accounts on Wednesday evening.
SpiceJet is facing several insolvency petitions from creditors, including Willis Lease, Aircastle Ireland Ltd, Wilmington and Celestial Aviation at NCLT and the appellate tribunal NCLAT.
Shares of Spicejet on Friday were trading up by Rs 0.53 or 0.86 per cent at Rs 62.40 apiece in the morning trade on the BSE.
