SpiceJet Clears Pending Salaries Till August After Rs 3,000 Crore Share Sale
SpiceJet had been delaying salaries to its staff for the last couple of months due to a liquidity crunch.
Troubled airline SpiceJet has settled all outstanding salary dues for its employees following a recent capital infusion of Rs 3,000 crore, PTI reported quoting sources. Salaries for July and August, as well as the remaining June wages for partially paid employees, were credited to their accounts on Wednesday evening.
A SpiceJet spokesperson confirmed the disbursement of employees' pending salaries. "Pending salaries of employees were disbursed on Wednesday evening," the spokesperson said on Thursday without divulging further details, PTI reported.
SpiceJet had been delaying salaries to its staff for the last couple of months due to a liquidity crunch.
The airline hasn't paid the provident fund for two and a half years while TDS, which is deducted from employees' salaries every month, has also not been deposited with the government.
SpiceJet raised Rs 3,000 crore last week through a qualified institutional placement. The QIP is part of the airline's strategy to bolster its balance sheet and tackle ongoing financial challenges.
Key investors in the QIP included Societe Generale (ODI), Goldman Sachs (Singapore) Pte. - ODI, Nomura Singapore Ltd. (ODI, and Discovery Global Opportunity (Mauritius).
NDTV Profit reported on Sept. 18 that the airline's statutory dues since 2010 have risen to Rs 794 crore, including Rs 135.5 crore in unpaid Provident Fund contributions.
Amid ongoing financial challenges and the global grounding of Boeing 737 MAX aircraft, SpiceJet's fleet has shrunk from 74 aircraft in 2019 to 28 in 2024.
According to SpiceJet’s corporate presentation for September 2024, the airline's total debt stands at Rs 4,300 crore, with Rs 3,700 crore owed to lessors and engineering creditors.
The airline recently announced a financial restructuring plan with Carlyle Aviation, which would reduce its net debt by Rs 336 crore. The restructuring covers lease obligations of $137.68 million (Rs 1,157 crore), to be adjusted down to $97.51 million (Rs 820 crore) upon settlement.
(With PTI inputs)
