New Delhi: In a relief for SpiceJet, The National Company Law Tribunal (NCLT) has dismissed an insolvency plea against it. The plea was filed by Wilmington Trust SP Services. “…lacks merit, is not maintainable and therefore stands dismissed,” the bench of NCLT said. The NCLT bench comprised members Mahendra Khandelwal and Rahul Prasad Bhatnagar.
Meanwhile, SpiceJet has said that it will focus on upgradation of its fleet and cost-cutting measures, as the no-frills airline works on ways to come out of turbulent times.
In an internal note to the senior staff on Monday, the airline said it now has a substantial bank balance of more than Rs 900 crore, including Rs 160 crore received as an instalment under the government’s Emergency Credit Line Guarantee Scheme (ECLGS).
The carrier, which had been facing multiple headwinds in recent months, has so far received around Rs 1,000 crore under the ECLGS.
The latest instalment came recently after its Chairman and Managing Director Ajay Singh infused funds into the airline, according to an official in the know.
Singh, who has been helming the no-frills carrier, has so far put in Rs 200 crore out of the Rs 500 crore fund infusion that he had announced last year.
The official said the airline has garnered a total of more than Rs 1,100 crore funds in three months.
Last week, the airline announced it has received the first tranche of Rs 744 crore as part of the total Rs 2,250 crore being mopped up through issuance of securities on a preferential basis.
On December 12, the airline said it would raise fresh capital of Rs 2,250 crore through issuance of securities.
During a meeting with the airline’s senior officials, Singh emphasised the importance of judicious spending and that he will personally oversee all major expenditures.
According to the note, the carrier will prioritise fleet upgrades, enhance on-time performance and cost-cutting measures will be implemented to streamline operations.
Currently, the airline has an operational fleet of around 40 planes.
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