Low-cost airline SpiceJet Ltd has settled a lawsuit filed by aircraft rental company Goshawk and its trustee Wilmington Trust SP Services Dublin Ltd that attempted to block the transfer of its freight and logistics business to a separate company, said someone familiar with the matter. The settlement paves the way for SpiceJet to complete the split by January 2022.
Goshawk and his trustee had leased three planes from SpiceJet, including two Boeing 737Max and one Boeing 737-800.
When SpiceJet decided to divest the assets, the lessors contacted the Delhi High Court to stop the transfer until the rental fee was paid.
SpiceJet’s pending dues for the three planes were reported to be around $ 16.2 million.
In an interim order dated September 22, the Delhi High Court said: “Until further orders, the judgment debtor (SpiceJet) is prevented from transferring / disposing of its assets up to the decremented amount.”
The court will hear the case again on November 29.
“The lawsuit against Goshawk has been settled,” the person quoted above said on condition of anonymity.
The move comes after the airline announced on November 17 that it had reached a settlement agreement with Boeing Co, with the Chicago-based company agreeing to provide some accommodation and settle outstanding claims related to the downtime. of the 737 Max aircraft and on his return to service.
Although SpiceJet officials did not specify the amount of compensation, it would be both in cash and in kind.
SpiceJet announced earlier in September that it had received shareholder approval to transfer its freight and logistics services business to its subsidiary SpiceXpress and Logistics Pvt. Ltd (SpiceXpress), which will result in a one-time gain of ??2,555.77 crore for the airline. The low-cost sale is expected to erase a substantial portion of the negative net worth from the company, SpiceJet had said. A slump sale is the transfer of one or more businesses for a lump sum consideration without values being assigned to individual assets and liabilities.
SpiceJet’s decision to separate profitable logistics and freight businesses will help the airline raise funds at a time when the airline’s auditors Walker Chandiok & Co LLP have cast doubts on the company’s ability to continue its activities.
The growing losses resulted in a complete erosion of the airline’s net worth, with its liabilities exceeding its assets by ??6,123.73 crore at the end of September 30.
A spokesperson for Goshawk was not immediately available for comment.
A spokesperson for SpiceJet said the company was unable to respond to the request because the case was pending.
“There is no stay of justice on the transfer of logistics activity to the subsidiary. The plan to inject capital into the logistics branch is progressing, “added the spokesperson for SpiceJet.
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