Spicejet has repaid half of its Rs 200 cr dues: City Union Bank

Bank is confident on recovering the balance

Spicejet has repaid Rs 100 crore of its total outstanding to City Union Bank, which is one of the lenders to the embattled airline, in the fourth quarter of FY15, a top bank official said Saturday.

The payment constitutes 50% of what the carrier owes Central Union Bank, said N Kamakodi, MD & CEO of the bank. He added that the bank has received enough collateral for the balance amount, which is secured by immobile assets, deposits and margins by Kalanithi Maran, who is the guarantor as well as the former promoter of the airline.

Kamakodi noted the group (Sun TV) and its promoter have been the bank's customers for decades and that other Sun Group companies are also clients of the banl. THe bank has has comfort with the promoter and will get the balance outstanding, he said.