TBM Staff - Mumbai
Budget carrier SpiceJet Limited disclosed a resolution with aviation lessor Celestial Aviation before the National Company Law Tribunal (NCLT). The airline has commenced payment processes under the agreement and seeks an extra week to complete the remaining settlement details. Once all formalities are concluded, Celestial Aviation has consented to withdraw the case.
In August of the previous year, Celestial Aviation Services initiated insolvency proceedings against SpiceJet due to nonpayment of approximately USD 29.9 million for renting nine aircraft. Celestial Aviation is part of five leasing firms seeking reimbursements from SpiceJet via NCLT. Other entities involved include Willis Lease Finance Corp., Wilmington Aircraft, and Alterna Aircraft BV Ltd. Nonetheless, the tribunal dismissed insolvency petitions submitted by Wilmington Trust SP Services (Dublin) in January and Willis Lease Finance in December of the preceding year.
Recently, Alterna Aircraft, based in Ireland, filed an insolvency claim against SpiceJet at the NCLT, requesting repayment of USD 11.1 million and GBP 265,000 as ordered by British courts. Debt-ridden SpiceJet faces multiple legal conflicts with creditors regarding unsettled debts.
On February 22, the Delhi High Court instructed SpiceJet to resolve USD 2 million owing to engine lessors EAM France 01 SAS and Sunbird France 02 SAS. Moreover, the Supreme Court commanded SpiceJet to settle USD 1.25 million with Credit Suisse by March 15, requiring the airline’s Chairman Ajay Singh to attend court a week following the remuneration.
Most recently, financially strained SpiceJet obtained an additional INR 316 crores (USD 40.6 million) in financing, raising the total funds acquired through a preferential issue to INR 1,060 crores (USD 135.3 million). This financial support enables the troubled airline to proceed with expansion plans and address its obligations to various creditors.
