SpiceJet has settled INR 1bn payment to City Union Bank. The last tranche of INR 0.25 crore was paid on June 30, 2023 as per the airline’ filing on July 3.
“This successfully closes the entire loan account which was taken in 2012. The repayment of the loan amount releases all securities that had been pledged with the bank. SpiceJet remains committed to finding amicable settlements with all its creditors as the airline builds back its fleet and its business,” the airline said in a statement.
The repayment to City Union follows an agreement with Nordic Aviation Capital (NAC),
“The agreement with NAC settles all past liabilities for the Q400s leased by NAC to SpiceJet and paves the way for the return and induction of three additional planes into the SpiceJet fleet,” the statement added.
Meanwhile, SpiceJet has delayed the announcement of its financial results for the Q1 2023 and for FY 2022-2023, citing illness of the key auditor member.
“The Company could not hold the meeting of Audit Committee and Board Members in the past for approval of financial results for financial year ended March 31, 2023, due to ongoing medical incapacitation of a key member of its Audit Committee,” SpiceJet said in regulatory filling on 30 June 2023.
The airline announced this as it was reaching the deadline laid down by SEBI (Securities and Exchange board of India) which mandates three months for any company to declare their result after the end of said financial quarter. SpiceJet issued a notice highlighting the issue.
The airline is also planning to expand its domestic network with the resumption of routes to Chennai and Bengaluru from Jharsuguda. The airline will operate thrice weekly flights to Chennai and four weekly flights to Bengaluru.