SpiceJet (SG, Delhi International) has cleared over INR6 billion rupees (USD71.3 million) of debts in the past month, according to an October 29 Bombay Stock Exchange filing. The payments include INR3.1 billion (USD36.9 million) in taxes collected but not remitted to the tax office. Also covered in the headline figure are outstanding salaries, GST liabilities, and provident fund contributions.
The payments follow the low-cost carrier raising INR30 billion (USD356.7 million) via a qualified institutional placement in September. SpiceJet says the funds will help it stabilise operations and position for long-term growth.
“We are committed to setting our house in order and are pleased to have cleared all pending TDS dues," said chairman and managing director Ajay Singh. TDS refers to taxes deducted at source, including employee taxes. "The successful clearance of dues marks a significant step forward for SpiceJet. It reinforces the airline's commitment to financial stability and responsible business practices."
September's fundraising has allowed SpiceJet to settle a series of debts, many of which have resulted in legal action and insolvency petitions. Since September, it has settled disputes with Engine Lease Finance Corporation, three BBAM special purpose vehicles (SPVs), several Aircastle Ireland Limited SPVs, Wilmington Trust SP Services (Dublin), and Shannon Engine Support Limited. SpiceJet says it wants to settle all ongoing financial disputes and has set aside a portion of the funds raised to do so.
