SpiceJet Resolves Financial Woes; Clears Salary, GST, PF Dues

In a significant development, crisis-hit SpiceJet, which has been grappling with financial challenges, recently made significant strides in addressing its outstanding obligations.

The airline, having raised Rs 3,000 crore through a Qualified Institutional Placement (QIP) of shares, announced that it has successfully cleared several key dues.

SpiceJet Financial Woes: Salary, GST Dues Cleared and Provident Fund Deposited

Within the first week of securing fresh funds, SpiceJet took decisive action. All pending salary and Goods and Services Tax (GST) dues have been settled.

This move comes as a relief to employees who had been anxiously awaiting their salaries and to the government, which had been tracking GST payments. 

The airline’s spokesperson confirmed this development, emphasizing the company’s commitment to meeting its financial obligations.

In a commendable step, SpiceJet also deposited ten months’ worth of Provident Fund (PF) dues. The PF is a crucial component of employee benefits, and this timely action demonstrates the airline’s commitment to its workforce. 

Employees can now breathe easier, knowing that their long-pending PF contributions have been addressed.

Ongoing Efforts and Impact on Share Market

While these achievements are noteworthy, SpiceJet acknowledges that there are still other outstanding dues to be settled. The process of clearing these remaining obligations is ongoing.

The airline has also reached settlements with various aircraft lessors, further stabilizing its financial position.

Despite these positive developments, SpiceJet’s stock price experienced a dip. On Friday, shares of the airline fell by 4.25 per cent, closing at Rs 62.79 apiece on the Bombay Stock Exchange (BSE). 

Investors are closely monitoring the airline’s financial recovery efforts, and any further progress could impact market sentiment.

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