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SpiceJet and its Chairman and Managing Director (CMD), Ajay Singh have moved a division bench against a single bench order of the Delhi High Court which upheld the arbitration award in the dispute with Kalanithi Maran, Chairman of Sun Group, and Kal Airways.
The case was scheduled for hearing before the division bench on Wednesday. However, due to SpiceJet’s absence of legal representation, the hearing was postponed to September 15. Later, SpiceJet’s lawyers requested a hearing for the following day. Consequently, the case has been rescheduled for August 24.
Postal Ballot Notice
Meanwhile, the company issued a Postal Ballot Notice outlining the allocation of proceeds totalling around ₹494 crore . These funds, resulting from the preferential allotment of 8,22,95,186 equity shares and 13,15,00,000 warrants, with the option to apply for an equivalent number of equity shares by the promoter group, will be used for various purposes.
These include settling statutory obligations such as TDS, GST, and PF (up to ₹250 crore), covering fleet operating expenses, including rent, deposits, and maintenance (₹150 crore), employee expenses exceeding ₹ 20 crore, allocating 25 per cent of the funds for general corporate purposes ( ₹123 crore), and maintaining the remaining amount in fixed/current deposit accounts in banks.
The company clarified that the disbursements will occur in installments between September 1, 2023, and March 31, 2025.
As part of the EGCLS schemes, SpiceJet’s Promoter, Ajay Singh, has committed to infusing ₹500 crore into the airline by subscribing to fresh equity shares and/or convertible instruments.
Promising future
In a July press statement, Ajay Singh, Chairman and Managing Director of SpiceJet, expressed his investment of ₹500 crore into the company. He emphasised its promising future, his dedication to its growth, and his belief that this investment will facilitate expansion, revenue and profit increase. The aim is to establish a sustainable and profitable business.
SpiceJet is already using a combination of $50 million ECLGS funds and its internal funds to restore its grounded aircraft. Among these, a Boeing 737 and a Q400 have been reinstated into operation, with more planes anticipated to rejoin the fleet soon.
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