According to Indian media reports, two parties are considering a major investment in SpiceJet (SG, Delhi International). As reported in ch-aviation, the LCC board is meeting on December 13, 2023 to consider options for raising capital, and the prospect of having more than one interested investor has increased the amount of money the airline is looking to raise.
Last week, the LCC told the Bombay Stock Exchange (BSE) that it is considering options to raise fresh capital. The Dec. 6, 2023 filing said the board meeting “will, among other things, discuss and consider options to raise fresh capital through the issuance of shares and/or convertible securities on a preferential basis.” The airline was seeking funding between 10 billion rupees and 12 billion rupees ($144 million), according to Indian offices. However, as more than one potential investor is being considered, the target figure has been revised upwards to around INR 15 billion (US$ 180 million). The additional funds would be used for ongoing expenses such as payroll and would also help finance the aircraft reactivation process. 23 of SpiceJet’s 67 aircraft remain out of service due to various reasons. Any capital raising is subject to shareholder and regulatory approval.
Separately, SpiceJet and Celestial Aviation Partners told the Delhi bench of the National Company Law Tribunal on December 7 that they were in settlement negotiations and sought additional time. SpiceJet owes Celestial $29.9 million in unpaid leases on nine aircraft. The lessor is one of three seeking to have LCC declared insolvent at the National Company Law Tribunal, the others being Aircastle (which has three separate applications pending, each involving separate SPVs) and Wilmington Trust SP Services ( Dublin). Recently, the NCLT dismissed an insolvency petition from engine lessor Willis Lease Finance, although that company told ch-aviation that it will continue to appeal in higher courts. In addition, lessors and other creditors have filed other lawsuits against SpiceJet in other courts in India and abroad. This week, the NCLT agreed to adjourn the Celestial matter to January 19, 2024.
Meanwhile, a Dubai International Financial Center (DIFC) court has ordered the release of a B737-800 that was seized from an aircraft lessor earlier this month. VT-SLM (msn 35063) was operating a scheduled passenger flight from Ahmedabad to Dubai International on December 1 when it was suddenly diverted to Dubai World Central, where an engine lessor was waiting with court-issued seizure documents.
“In a hearing at the DIFC Court on December 7, 2023, the order was set aside in favor of SpiceJet,” SpiceJet said in a statement on the matter. “Furthermore, the judge has initiated an investigation into the losses incurred by SpiceJet due to the issuance of the order. The court has also ordered to pay the legal fees incurred by SpiceJet.”
VT-SLM departed on December 8 by ferry to Mumbai International and resumed revenue operations the following day. However, ADS-B flight tracking data shows that the aircraft did not venture out of Indian airspace.
