SpiceJet considering various options to settle dues; cargo business transfer in progress

Budget carrier SpiceJet on Friday, December 23, clarified that the company continues to explore various options for settlement of its outstanding dues with its creditors to normalise its obligations. Hit by high fuel prices and rupee depreciation, SpiceJet saw its net loss widen to Rs 789 crore in the June quarter. The airline is also facing other headwinds, including some of its aircraft having technical snags in recent times, and quite a few of its Boeing 737 planes were deregistered due to non-payment of dues to lessors.

In an exchange filing, SpiceJet said the members of the company earlier approved the transfer of its cargo business undertaking to its subsidiary SpiceXpress and Logistics Private Ltd along with all related assets and liabilities, inter-alia, knowhow, trademark, licences, franchises, customer contracts, distribution network and so on.

"This transfer of cargo business undertaking to SpiceXpress and Logistics Private Ltd will provide greater and differentiated focus to (the) cargo and logistics business and will allow raising capital for the business to accelerate its growth," it said. This is in progress and the company is awaiting final approval from its lenders as per the terms of the financial facilities availed from them, it added.