Shut SpiceJet, take over assets, says Madras HC in loan default case

CHENNAI: Citing SpiceJet’s failure to pay its debt to a Switzerland-based company, the Madras high court ordered the winding up of SpiceJet Limited and takeover of its assets by an official liquidator. “I am of the opinion that this company petition should be allowed and SpiceJet directed to be wound up. The official liquidator is directed to take over the assets of the respondent company,” ruled Justice R Subramanian on Monday.
Since counsel for SpiceJet sought time to move an appeal against the order, the judge suspended the operation of the order for three weeks, on a condition that the company deposit 5 million US dollars in two weeks. In a BSE filing on Tuesday, however, SpiceJet said the Madras high court “was pleased to stay the operation of the order for a period of three weeks, subject to the condition that (SpiceJet) deposits the amount equivalent to $5 million within a period of two weeks”.