The Madras High Court has directed no-frills carrier SpiceJet Limited to wind up its operations and directed the official liquidator attached to the high court to take over its assets after the airline failed to pay over $24 million to Swiss company SR Technics for maintenance, repair and overhauling of aircraft engines, modules, components, assemblies and parts.
The airline said the court has stayed the order for a period of three weeks provided that it deposits a minimum of $5 million within two weeks. SpiceJet said it shall initiate appropriate remedial steps, including preferring an appeal.
SpiceJet reported its seventh consecutive consolidated quarterly loss during the three-month period that ended on 30 September. Mounting losses have resulted in complete erosion of the airline’s net worth.
Meanwhile, SpiceJet is also facing a lawsuit by aircraft lessor Goshawk and its trustee Wilmington Trust SP Services Dublin Ltd regarding unpaid dues at the Delhi High Court which is set to hear the case next on 14 December.