NCLT Asks SpiceJet To Resolve Its Problems With Lessors In Insolvency Case

SpiceJet was instructed by the National Company Law Tribunal (NCLT) to attempt to settle disagreements with the lessors who had started bankruptcy proceedings against the airline.

This came up during the insolvency proceedings against SpiceJet by one of its lessors ­­ — Celestial Aviation Services Limited. The NCLT highlighted that lessors, and not banks or other financial institutions, had filed all insolvency petitions against SpiceJet. The court has deferred the matter to 15 Spetember for now, before asking the airlines to also offer its shares to the lessors, according to Livemint.

SpiceJet announced that in order to pay off debts totaling 231 crore, it will award 48.1 million shares on a preferential basis to nine of its aircraft lessors.

The low-cost airline reported in a stock exchange filing that the company's board of directors approved numerous resolutions, including a 2,500 crore fundraising campaign and a preferential offer of shares to lessors at an issue price of Rs 48 per share to pay off its outstanding debts.

Lessors had asked the Directorate General of Civil Aviation (DGCA) to have one aircraft, leased to SpiceJet, to be deregistered in May 2023. These lessors include Wilmington Trust SP Services, Sabarmati Aviation Leasing, and Falgu Aviation. The bankruptcy case filed by Celestial Aviation Services Limited against SpiceJet is the fifth such instance. Petitioning lessors also include Willis Lease Finance, Aircastle, and Wilmington.

The airline is also embroiled in legal disputes as the Delhi High Court has also ordered SpiceJet to pay former owner Kalanithi Maran Rs 100 crore. This has to be done by September 10th to repay a debt. The total sum owed by SpiceJet to Maran is Rs 397 crore. On September 11th, the High Court is expected to render a decision on the matter.