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Spicejet: Now, aircraft lessor files insolvency plea against SpiceJet; NCLT hearing next week
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NEW DELHI: An aircraft lessor, Aircastle, has filed insolvency resolution proceedings against cash-strapped SpiceJet and the National Company Law Tribunal (NCLT) will hear this case next week. The NCLT website shows two more petitions for insolvency resolution proceedings against SpiceJet are pending. Engine supplier Willis Lease Finance Corporation filed its plea on April 12 and Acres Buildwell has filed on February 4 against SpiceJet which has for several months been defaulting on statutory payments like PF to employees and depositing their tax deducted at source (TDS).
Ireland-based aircraft lessor Aircastle filed the petition against SpiceJet on April 28 and it will be heard by NCLT’s principal bench on May 8, according to the tribunal’s website. Commenting on this, a SpiceJet spokesperson said: “Presently there are no aircraft from this lessor in our fleet. All aircraft from this lessor have already been returned by SpiceJet. This development, in no manner, affects our operations or operating fleet.”
“We are confident of resolving the matter without court proceedings and we are in discussions with their senior leadership team for the same. The comments provided here are without prejudice to our rights and in no way should be deemed as admission of any liabilities,” the airline spokesperson added.
NCLT had on Thursday reserved its verdict on Go First’s voluntary insolvency plea.
Regarding Acres case, SpiceJet sources say both parties have already filed a joint application in NCLT to settle the matter. And sources add the Willis matter is yet to be admitted by NCLT and that no notice has been issued to SpiceJet so far. Sources claim the airline does not have any engines from Willis at the moment and all were returned about a year back.
Officials of SpiceJet, which has been trying to raise funds for a long time now, say the company “continues its efforts to have an out of court settlement with all our business partners (few of which are disputed as well) and have successfully settled the same.”
This February, SpiceJet’s biggest lessor — Carlyle Aviation Partner — had decided to convert $100 million dues to the airline into equity shares and compulsorily convertible debentures (CCDs). It picked up over 7.5% stake in SpiceJet and a part of the dues are to be converted into CCDs of SpiceXpress. “As a part of ongoing restructuring with aircraft lessors…. all these CCDs will be transferred to those aircraft lessors who agree to exchange their lease liabilities….,” the company had said then.
The airline has been trying to raise funds for months now. It hived off of its cargo and logistics arm, SpiceXpress, into a separate entity from April 1, 2023. It hopes this will allow SpiceXpress to raise funds independently and the airline had while announcing this said the move will “wipe out a substantial portion of the company’s negative net worth and unlock significant value for the company and its shareholders.”
Ireland-based aircraft lessor Aircastle filed the petition against SpiceJet on April 28 and it will be heard by NCLT’s principal bench on May 8, according to the tribunal’s website. Commenting on this, a SpiceJet spokesperson said: “Presently there are no aircraft from this lessor in our fleet. All aircraft from this lessor have already been returned by SpiceJet. This development, in no manner, affects our operations or operating fleet.”
“We are confident of resolving the matter without court proceedings and we are in discussions with their senior leadership team for the same. The comments provided here are without prejudice to our rights and in no way should be deemed as admission of any liabilities,” the airline spokesperson added.
NCLT had on Thursday reserved its verdict on Go First’s voluntary insolvency plea.
Regarding Acres case, SpiceJet sources say both parties have already filed a joint application in NCLT to settle the matter. And sources add the Willis matter is yet to be admitted by NCLT and that no notice has been issued to SpiceJet so far. Sources claim the airline does not have any engines from Willis at the moment and all were returned about a year back.
Officials of SpiceJet, which has been trying to raise funds for a long time now, say the company “continues its efforts to have an out of court settlement with all our business partners (few of which are disputed as well) and have successfully settled the same.”
This February, SpiceJet’s biggest lessor — Carlyle Aviation Partner — had decided to convert $100 million dues to the airline into equity shares and compulsorily convertible debentures (CCDs). It picked up over 7.5% stake in SpiceJet and a part of the dues are to be converted into CCDs of SpiceXpress. “As a part of ongoing restructuring with aircraft lessors…. all these CCDs will be transferred to those aircraft lessors who agree to exchange their lease liabilities….,” the company had said then.
The airline has been trying to raise funds for months now. It hived off of its cargo and logistics arm, SpiceXpress, into a separate entity from April 1, 2023. It hopes this will allow SpiceXpress to raise funds independently and the airline had while announcing this said the move will “wipe out a substantial portion of the company’s negative net worth and unlock significant value for the company and its shareholders.”
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