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

News Snippets

  • EMI's set to rise after the RBI hikes key policy rate
  • Calcutta HC says that the right to privacy does not end with the death of a person
  • Supreme Court says that a delayed order of preventive detention makes it invalid
  • Shashi Tharoor posts an erronous map of India in his manifesto, rectifies the error after criticism
  • Sonia Gandhi to take a call on who will be Rajasthan chief minister
  • Mallikarujun Kharge to be the new candidate to oppose Shashi Tharoor in the Congress presidential elections
  • RBI says that the September inflation rate may be higher than 7%
  • RBI hikes key rates by 50bps, downwardly revises FY23 growth rate to 7% from 7.2% earlier
  • Stocks recover well on Friday: Sensex gains 1016 points to0 57426 and Nifty 276 points to 17094
  • Mirabai Chanu wins gold easily at the National Games
  • In a first, the Supreme Court recognizes marital rape, although for the limited purpose of allowing married women the right of abortion up to 24 weeks if they conceived as a result of forced sex by their husbands
  • Air India cuts discounts on base fare to students and senior citizens from 50% to 25%
  • Mallikarjun Kharge and Digvijay Singh are being touted as frontrunners to take on Shashi Tharoor in the elections for the post of Congress president
  • Sonia Gandhi will decide who will be Rajasthan CM if she feels there is a need to change guard after the near-rebellion by MLAs in the state
  • Ashok Gehlot bowed out of the race for being Congress president after meeting Sonia Gandhi
RBI hikes key rates by 50bps, stocks jump and recover 50% of the losses incurred in the last few session
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.