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SpiceJet settles $30 mn dispute with Celestial Aviation outside tribunal

SpiceJet had announced on February 22 that it had raised a second tranche of Rs 316 crore under the preferential issue of equity and warrants

SpiceJet

Deepak Patel New Delhi

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The representatives of SpiceJet and Celestial Aviation informed a bench of the National Company Law Tribunal (NCLT) last week that settlement terms had been reached and requested an adjournment. The tribunal granted the adjournment. "The matter is now scheduled to be formally withdrawn on 1st March, 2024," the airline noted.

SpiceJet had announced on February 22 that it had raised a second tranche of Rs 316 crore under the preferential issue of equity and warrants, which was approved by shareholders in early January. On January 26, the first tranche of Rs 744 crore was infused into the airline.

On January 11, the beleaguered airline's shareholders gave their approval to raise a total of Rs 2,241.5 crore through the issuance of equity and warrants—Rs 1,591.5 crore by issuing equity to 58 entities and Rs 650 crore by issuing warrants on a preferential basis to five other entities. This means that the remaining Rs 1,181.5 crore is yet to be infused into the airline by the investors.

These 63 entities include financial institutions, foreign institutional investors, high-net-worth individuals, and private investors such as Preeti Mahapatra, Harihara Mahapatra, Elara India Opportunities Fund, and Aries Opportunities Fund.

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First Published: Feb 28 2024 | 9:50 PM IST

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