NCLT defers hearing of insolvency plea against SpiceJet to June 1

SpiceJet

The National Company Law Tribunal (NCLT) on May 25 deferred to June 1, an insolvency plea by aircraft lessor Aircastle against SpiceJet.

The tribunal had on May 17 asked the Gurugram-based airline to file a response to the lessor’s insolvency plea and explore options for settlement.

Aircastle confirmed that settlement talks with SpiceJet had not been fruitful and the airline's offer was not good enough.

The creditor moved NCLT claiming that SpiceJet has unpaid dues and sought initiation of insolvency proceedings under Section 9 of the Insolvency and Bankruptcy Code (IBC).

On May 8, a two-member principal bench of the NCLT headed by president Ramalingam Sudhakar issued the notice to SpiceJet and directed it to list the matter on May 17.

The development comes close on the heels of beleaguered budget carrier Go First filling for voluntary insolvency resolution proceedings.

SpiceJet, however, had said the development would not affect its operations and it was confident of resolving the matter without court proceedings. "The comments provided here are without prejudice to our rights and in no way should be deemed as an admission of any liabilities,” a spokesperson for the low-cost airline said.

On May 11, SpiceJet said it is taking steps to revive its grounded fleet using the $50 million it received from the government's Emergency Credit Line Guarantee Scheme (ECLGS) and internal cash accruals, as it sought to quash rumours of insolvency.

SpiceJet has been saying it has no intention of filing for insolvency and is focused on its business.

SpiceJet aircraft deregistered by DGCA

On May 19, the Directorate General of Civil Aviation (DGCA) deregistered three planes of  SpiceJet at the request of lessors.

Of the three, two were non-operational and its operations had not been affected, SpiceJet said on May 19.

Earlier this month, Lessors Wilmington Trust SP Services, Sabarmati Aviation Leasing and Falgu Aviation Leasing approached the civil aviation regulator, requesting deregistration of three Boeing 737-800s over non-payment of dues.

The DGCA deregistered the planes with call signs VT-MXJ, MXF and SZJ.