SpiceJet said on Monday that it was against a report about its loans placed in high risk category by banks, and called it absolutely false and baseless. The statement comes after news agency Reuters reported earlier today that private lenders IDFC First Bank and Yes Bank and state-owned Indian Bank have put their loans into SpiceJet Ltd in the high-risk category.
Our account isn't on high risk or alert, according to none of our banks. SpiceJet said in a statement that the story was run despite our strong denial and no official comment from any of our banks. Shares in SpiceJet fell by as much as 4.8 per cent on the news. The stock is down 30 per cent this year.
SpiceJet had said earlier that it had entered a full and final settlement with the Airports Authority of India AAI and cleared all outstanding principal dues of the airport operator. With this, SpiceJet will no longer be on 'cash and carry' at AAI-run airports across the country and will revert to an advance payment mechanism for daily flight operations.
In an unprecedented move last week, India slashed SpiceJet's approved departures by 50 per cent for a period of eight weeks after an audit revealed the airline's inability to provide a safe, efficient and reliable service. While placing SpiceJet under enhanced surveillance, the regulator stated in its notice that there was poor internal safety oversight at the airline and that financial issues at the carrier were leading to frequent shortage of spare parts.