SpiceJet and its chairman and managing director (CMD) Ajay Singh have filed a motion against the Delhi High Court’s single-judge order upholding an arbitration award in a dispute with Sun Group and Kal Airways chairman Kalanithi Maran.
The case is scheduled to be heard on the divisional bench on Wednesday. But the hearing was postponed until Sept. 15 because SpiceJet had no legal representation. SpiceJet’s lawyers then called for a hearing the next day. Accordingly, the case has been rescheduled for August 24.
mail ballot notification
Meanwhile, the company issued a postal ballot notice outlining the distribution of proceeds totaling about Rs 4.94 crore. These funds come from 8,22,95,186 shares and 13,15,00,000 warrants issued by the Promoter Group, with an option to apply for an equal number of shares, and will be used for various purposes.
These include addressing statutory obligations like TDS, GST and PF (up to Rs. 2.5 crore), covering fleet operating expenses including rental, deposit and maintenance (Rs. 150 crore), staff costs above Rs. 200 crore, allocating 25% of funds for general For corporate purposes (Rs 1.23 crore) and keep the remaining amount in a fixed/demand deposit account at the bank.
The company clarified that the payments will be made in installments between September 1, 2023 and March 31, 2025.
As part of the EGCLS plan, SpiceJet’s promoter Ajay Singh has pledged to inject Rs 500 crore into the airline through the subscription of new equity and/or convertible instruments.
Future can be expected
SpiceJet chairman and managing director Ajay Singh said in a press statement in July that he would invest Rs 500 crore in the company. He highlighted its bright future, his dedication to its growth, and his belief that the investment will lead to expansion, increased revenue and profits. The goal is to build a sustainable and profitable business.
SpiceJet has used $50 million of ECLGS funding and its own internal funds to restore its grounded aircraft. Of these, a Boeing 737 and a Q400 have returned to service, with more aircraft expected to rejoin the fleet soon.