New Delhi: SpiceJet, the low-cost airline that was on its deathbed in December 2014 but has since been making successive quarterly profits, now faces a legal battle between its current and former owners over issue of convertible warrants.
Kalanithi Maran of Sun Group, the former promoter of SpiceJet, has dragged current promoter Ajay Singh and the airline to the Delhi High Court over non-issuance of convertible warrants that formed part of the deal under which he passed on ownership to Singh in January last year.
The Delhi High Court on Friday directed both parties to come up with a proposal on the issue and said it will pass an order accordingly on Monday.
A SpiceJet spokesman said a proceeding has been filed by Kalanithi Maran and KAL Airways before the Delhi High Court seeking various interim reliefs. "No relief has been granted by the court and the matter is posted for further hearing."
Sun Group Chief Financial Officer SL Narayanan did not answer calls and text messages.
In January 2015, Maran and his KAL Airways transferred their entire chunk of 350.4 million equity shares, equivalent to a 58.46% stake, to Singh. Under the terms of the deal, Maran and KAL were to be allotted 189 million convertible warrants in return for Rs 330 crore handed to the airline for payment of taxes and dues.
12/03/16 Binoy Prabhakar & Mihir Mishra/Economic Times
Kalanithi Maran of Sun Group, the former promoter of SpiceJet, has dragged current promoter Ajay Singh and the airline to the Delhi High Court over non-issuance of convertible warrants that formed part of the deal under which he passed on ownership to Singh in January last year.
The Delhi High Court on Friday directed both parties to come up with a proposal on the issue and said it will pass an order accordingly on Monday.
A SpiceJet spokesman said a proceeding has been filed by Kalanithi Maran and KAL Airways before the Delhi High Court seeking various interim reliefs. "No relief has been granted by the court and the matter is posted for further hearing."
Sun Group Chief Financial Officer SL Narayanan did not answer calls and text messages.
In January 2015, Maran and his KAL Airways transferred their entire chunk of 350.4 million equity shares, equivalent to a 58.46% stake, to Singh. Under the terms of the deal, Maran and KAL were to be allotted 189 million convertible warrants in return for Rs 330 crore handed to the airline for payment of taxes and dues.
12/03/16 Binoy Prabhakar & Mihir Mishra/Economic Times