India's SpiceJet has two weeks to pay US$32.6m to former owner

India's Supreme Court has ordered SpiceJet to pay out an INR2.7b rupee (US$32.6m) bank guarantee to a former majority shareholder of the airline in what may be the closing chapters of a seven-year-old legal dispute. In 2015, Kalanithi Maran, a billionaire with extensive media interests, sold his 58.46% stake in the near-bankrupt SpiceJet for INR2 (US$0.024) to Ajay Singh, the current chairman and managing director of the airline. Singh also took over SpiceJet's liabilities of INR15b (US$181.4m). The transaction included Maran providing equity of INR6.79b (US$82.1m) in exchange for warrants and preference shares. In 2017, Maran initiated legal action, claiming neither the warrants nor preference shares were issued, nor was any money returned. Following arbitration in 2018, the disputed amount was reduced to INR5.78b (US$69.9m), plus interest. SpiceJet paid INR3.08b (US$37.2m) of that, leaving INR2.7b outstanding. SpiceJet set aside the remaining amount, providing a bank guarantee to cover it, while the matter continued to be subject to further legal proceedings. This week, the court ordered the airline to pay the balance within two weeks. "The remaining amount of INR2.7b is reserved with the company in cash, against which a bank guarantee has been given. This amount of INR2.7b will be comfortably discharged," said a statement issued by SpiceJet this week.<br/>