SpiceJet Completes Payment Of Rs 100 Crore To Kal Airways
SpiceJet settles Rs 100 crore dues to Kal Airways, shows commitment to resolving outstanding dues.
Spicejet completed the payment of Rs 100 crore that it owed to Kal Airways on Tuesday, based on the directions of the Delhi High Court.
On Monday, SpiceJet informed the Delhi High Court that they have already disbursed Rs 62.5 crore of the Rs 100 crore owed to Kalanithi Maran. The court had then set a deadline for the airline to remit the remaining amount by the end of the following day, within regular banking hours.
Maninder Singh, who is representing the Marans, raised concerns over SpiceJet's delayed payment, noting that the airline had ample time to fulfill its obligation since Aug. 24.
In a previous ruling, the Delhi High Court directed Ajay Singh, chairman and managing director of SpiceJet, to settle a total of Rs 100 crore with former promoter Maran by Sept. 10. The court highlighted the importance of this payment in showcasing Singh's genuine commitment to resolving his outstanding dues with the Maran family.
The dispute began with a 2015 agreement between Maran and Singh, SpiceJet's promoter. Maran, who is associated with Sun Network and Kal Airways, transferred 58.46% stake in SpiceJet to Singh. The deal also outlined provisions for Maran and Kal Airways to obtain warrants and preference shares, but these were never issued. In 2018, an arbitral tribunal granted Maran a reimbursement of Rs 579 crore, along with interest.
To secure the interest amount during the execution of these judgments, the high court directed the airline to deposit approximately Rs 243 crore.
Additionally, the Supreme Court on Monday expressed dissatisfaction with SpiceJet for not meeting its debt obligations to Credit Suisse Group AG. The court instructed the airline to deposit $5,00,000 by Sept. 15 as part of its monthly payments to the Swiss investment bank and an extra $1 million toward the outstanding amount. SpiceJet states an arrear of $4 million, while Credit Suisse argues that it's $4.5 million.