Celestial Aviation Services moves insolvency plea against SpiceJet

Celestial Aviation Services Limited, a lessor, has filed a plea to initiate Corporate Insolvency Resolution Process (CIRP) against low-cost airline SpiceJet at the National Company Law Tribunal (NCLT).

The plea, which has been filed under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016, is likely to come up for hearing on August 3.

Celestial is the fifth lessor to move an insolvency plea against SpiceJet. Pleas by lessors such as Willis Lease Finance, Aircastle and Wilmington are already pending at the NCLT. Willis' plea is likely to come up for hearing on August 8.

The NCLT on May 8 issued notice in Aircastle's first plea and sought the airline's response. SpiceJet had accordingly filed a response to the plea, and Aircastle sought a short adjournment on May 25 to respond to the airline's reply. Subsequently, SpiceJet had filed an application questioning the maintainability of Aircastle's insolvency plea. SpiceJet has also questioned the maintainability of Aircastle's second insolvency plea and Wilmington's plea.