NEW DELHI: Struggling-to-survive SpiceJet has admitted not paying about Rs 2,200 crore TDS that was deducted from employees' salary between April 2020 and Aug 2023 to tax authorities and over Rs 1,353 crore PF to staffers in the same period.
The airline's preliminary placement document (PPD) filed with BSE says about Rs 720 crore TDS for AY 2009-10 to 2013-14 is disputed. The LCC has listed significant dues to customs, service tax and GST as "disputed". The airline is trying to raise Rs 3,000 crore by the month-end to remain afloat.
"Owing to our financial stress , we have been in alleged default under several of our aircraft lease agreements, leading to grounding of substantial part of our fleet. Such alleged defaults have also led to our aircraft lessors and other vendors to initiate legal or enforcement proceedings against us, including proceedings under the Insolvency and Bankruptcy Code , 2016, enforce bank guarantees, appropriate security deposits or repossess our aircraft, which has and may in the future adversely affect our business, financial condition and results of operations," the PPD says.
The airline has grounded more than half of its fleet. "As of June 30, 2024, of our total fleet size of 64 aircraft, 36 aircraft (constituting to 56.3% of total fleet size) are grounded, owing primarily to alleged default in payment of dues to the aircraft lessors and lack of maintenance on such aircraft due to financial constraints and/or non-availability of components and spare parts. Due to the smaller size of our fleet after the pandemic, our traffic and market share have both declined," it says.
The airline plans to utilise "substantial portion of proposed capital raise" through this PPD for un-grounding fleet. "We believe that our prospects for servicing our existing debt and achieving future profitability depend in large part on our ability to attain critical mass in terms of fleet size, projected passenger volumes and projected yield levels.
The airline's preliminary placement document (PPD) filed with BSE says about Rs 720 crore TDS for AY 2009-10 to 2013-14 is disputed. The LCC has listed significant dues to customs, service tax and GST as "disputed". The airline is trying to raise Rs 3,000 crore by the month-end to remain afloat.
"Owing to our financial stress , we have been in alleged default under several of our aircraft lease agreements, leading to grounding of substantial part of our fleet. Such alleged defaults have also led to our aircraft lessors and other vendors to initiate legal or enforcement proceedings against us, including proceedings under the Insolvency and Bankruptcy Code , 2016, enforce bank guarantees, appropriate security deposits or repossess our aircraft, which has and may in the future adversely affect our business, financial condition and results of operations," the PPD says.
The airline has grounded more than half of its fleet. "As of June 30, 2024, of our total fleet size of 64 aircraft, 36 aircraft (constituting to 56.3% of total fleet size) are grounded, owing primarily to alleged default in payment of dues to the aircraft lessors and lack of maintenance on such aircraft due to financial constraints and/or non-availability of components and spare parts. Due to the smaller size of our fleet after the pandemic, our traffic and market share have both declined," it says.
The airline plans to utilise "substantial portion of proposed capital raise" through this PPD for un-grounding fleet. "We believe that our prospects for servicing our existing debt and achieving future profitability depend in large part on our ability to attain critical mass in terms of fleet size, projected passenger volumes and projected yield levels.
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