Tag Archives: litigation

NCLT defers hearing on Go First to July 11, leaves lessors stranded

The National Company Law Tribunal (NCLT) on Monday deferred its hearing in Go First’s insolvency case to July 11, leaving the lessors stranded.

The NCLT indicated that it needed more time to study the Delhi High Court’s order asking the Directorate General of Civil Aviation (DGCA) to deregister all its 54 aircraft by May 3, 2024, reports Bhavini Mishra for Business Standard.

Engine lessors urged the NCLT that their engines are connected to some of the deregistered aircraft and if these aircraft are required to leave the country after deregistration, their engines must also be deregistered.

They also told the NCLT that Go First’s Resolution Professional had no jurisdiction left now that the DGCA has deregistered all the 54 aircraft as per the Delhi HC, and the Resolution Professional has not challenged this.

The Resolution Professional on Monday declined to clarify the future course of action for the airline.

Lenders told the newspaper the only option that remained was liquidation. They said they would lose money when the airline was liquidated since the value of its assets had gone down due to prolonged litigation.

Go First had filed for bankruptcy in May last year. Since then, the lessors have been locked in a battle with the former owner of the airline, lenders, and the resolution professional to take control of their aircraft.

SpiceJet, Cross Ocean Partners settle USD 11.2mn dispute

SpiceJet has reached a settlement terms with aircraft leasing firm, Cross Ocean Partners, resolving a dispute of about USD 11.2 million (INR 93 crore). The parties made this joint announcement before the Delhi High Court in the ongoing execution petition being pursued by Cross Ocean Partners.

The settlement is expected to result in significant savings for SpiceJet and also put an end to dispute. As part of the arrangement, the airline will also benefit from transfer of airframe and an engine at no additional cost, augmenting its operational capabilities.

By resolving this dispute through amicable negotiations, SpiceJet and Cross Ocean Partners have demonstrated their commitment to finding mutually beneficial solutions and avoiding prolonged litigation.

Ajay Singh, Chairman and Managing Director, SpiceJet, said, “We are pleased to have reached a mutually acceptable resolution with Cross Ocean Partners, which will result in significant cost savings for SpiceJet and also cease prolonged expensive litigation. This settlement reinforces our commitment to effectively settle with our partners and strengthen our operational capabilities. We remain focused on sustaining the positive momentum and creating long-term value for our stakeholders.”

In addition to this settlement, SpiceJet recently concluded a similar agreement with Celestial Aviation, a subsidiary of AerCap, one of the largest aircraft lessor groups. The settlement, valued at USD 29.9 million (INR 250 crore), further underscores SpiceJet’s dedication to resolving disputes and strengthening its financial position.