oppn parties Is Spice Jet At The End Of Its Tether?

News Snippets

  • Maratha quota bill likely to be tabled in Maharashtra assembly today
  • Arvind Kejriwal skips ED summons for the 6th time, says the case is in court and will follow court's decision
  • PM Modi says UP has gone from 'red tape' to 'red carpet' in 7 years of 'double engine' government
  • Farm unions reject government offers, to resume Delhi march from today
  • Centre says some Aadhar cards in Bengal 'deactivated' due to technical glitz, will be activated back soon
  • Supreme Court stays LS privilege panel summons to Bengal officials over BJP MP Sukanta Majumdar injury case
  • Supreme Court junks Sandeshkhali petition, says it cannot be compared to Manipur, asks petitioner to approach Calcutta HC
  • Supreme Court gets tough on Chandigarh mayoral elections, asks for ballot papers and video footage, does not order re-election
  • Government starts withdrawing old small tax demands, up to Rs 25000 per entry till FY 2009-10 and up to Rs 10000 per entry from FY 2010-11 to FY 2014-15 with an overall ceiling of Rs 1 lakh per tax payer
  • Stocks remained positive on Monday: Sensex gained 281 points to 72708 and Nifty 81 points to 22122
  • Jasprit Bumrah likely to be rested for 4th Test while K L Rahul may be back
  • FIH Pro League hockey: India beat Spain 8-7 in shootout
  • SP leader Salim Sherwani, miffed at no Muslim candidate given RS ticket, quits party
  • Army going for big (Rs 57000cr) upgrade in combat vehicles to replace T-72 tanks
  • Mamata Banerjee says the BJP is doing nothing to resolve the Sandeshkhali dispute but instead fanning the fires to escalate it
History created in Supreme Court as Chandigarh mayoral poll ballots counted in court, judges declare AAP candidate Kuldeep Kumar winner after taking into account the votes defaced by returning officer Anil Masih
oppn parties
Is Spice Jet At The End Of Its Tether?

By Sunil Garodia
First publised on 2022-01-28 16:23:54

About the Author

Sunil Garodia Editor-in-Chief of indiacommentary.com. Current Affairs analyst and political commentator.

The Supreme Court, while castigating the attitude of Spice Jet, allowed the airlines three weeks to come up with a solution to its problems by staying the winding up order of Madras HC for that period. Spice Jet has defaulted on its payments to Credit Suisse and the Madras HC had ordered winding up of the company. The company had sought relief from the apex court.

But a solution is not on the horizon unless Spice Jet comes up with something better. For, in the court room today, when the Spice Jet counsel told the court that it was trying to "work something out" the Credit Suisse counsel retorted that what Spice Jet was proposing was "not even worth mentioning". This proves that there is a huge chasm between the two.

The three weeks granted by the Supreme Court should be used by Spice Jet to find more money and make a better offer to Credit Suisse, failing which it is certain that the apex court will let the Madras HC order stand and winding up proceedings will start.

The Supreme Court was livid at the airlines. It questioned "why don't you produce your financial statements?" and asked whether it wanted to run the show or close down. The court also said that "if they don't want to run the airline" then the court will "direct it for liquidation".

After this hearing, time is running out for Spice Jet. If it cannot arrange the funds required to pay-off its creditors including Credit Suisse, or at least arrange for such funds that will allow it to arrive at a negotiated settlement with the creditors in the next three weeks, it is now clear that it will be wound up. The Supreme Court will not give it further time.