Pointing out that SpiceJet cannot get into specifics of the arbitration proceedings with its previous owners Kalanithi Maran and KAL Airways, sources in the airline have said that the claim of ₹2,000 crore as compensation by the former owners is “rubbish” and is a “pressure tactic”.

“The question of damages does not arise as the entire issue was subject to approval of regulatory bodies,” an airline spokesperson said, adding that the permission was also denied when Kalanithi Maran and KAL Airways were in control and had applied for the same permission.

SL Narayanan, Group CFO, Sun Group and spokesperson, expressed his inability to comment on the ongoing proceedings as the matter was sub judice.

Sources indicated that FTI Consulting, an independent global business advisory firm, had been engaged by the Marans for the case. FTI Consulting helps organisations manage change, mitigate risks and resolve disputes. The firm has estimated that the Marans should be able to get about ₹2,500 crore, including warrants and preferential shares.

However, a SpiceJet spokesperson told newspersons that the issue to determine what amounts are payable to the previous promoters along with other issues are presently being adjudicated by the Arbitral Tribunal.

“The Delhi High Court has, pending arbitration, asked SpiceJet to deposit ₹329 crore in the form of bank guarantee and ₹250 crore as cash in the High Court as security. The company is evaluating all options to safeguard its interest,” the spokesperson said.

The spokesperson added that in December 2014 the previous promoters (Kalanithi Maran and KAL Airways) transferred their entire shareholding in the company to Ajay Singh on the basis that Singh shall immediately assume the position of promoter and would take over all the liabilities of the company and have Maran’s personal guarantees and assets released. “An aggregate amount of ₹350 crore was received by the company jointly from Kalanithi Maran and KAL Airways to pay statutory liabilities that had accrued during the management and control of previous promoters which was to be returned by SpiceJet after eight years. In addition, there was a sum of ₹229 crore which was brought and utilised by the previous promoter prior to transfer of ownership, management and control to Ajay Singh,” the spokesperson said.

The spokesperson claimed that while in control, the previous promoters had sought approval to convert this amount into warrants which was refused by the BSE and SEBI.

The spokesperson added that on transfer of ownership, management and control of the company to Singh, it was decided to issue warrants subject to receipt of necessary approval from the stock exchange. The permission, however, was refused by the stock exchange.

Published on July 11, 2017