NCLT To Hear Insolvency Plea Against SpiceJet On May 8

This coincides with the ongoing crisis of Go First, a cash-strapped competitor, which has been forced to cancel flights and initiate voluntary insolvency resolution proceedings.

On April 28, Aircastle (Ireland) Ltd, an aircraft lessor, filed a petition for initiating insolvency resolution proceedings against SpiceJet.

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After Go First, no-frills airline SpiceJet too seems to be facing headwinds, with a lessor filing a plea seeking insolvency resolution proceedings against the airline, reported PTI. The petition is scheduled for hearing before the National Company Law Tribunal (NCLT) next week on May 8. 

This coincides with the ongoing crisis of Go First, a cash-strapped competitor, which has been forced to cancel flights and initiate voluntary insolvency resolution proceedings.

On April 28, Aircastle (Ireland) Ltd, an aircraft lessor, filed a petition for initiating insolvency resolution proceedings against SpiceJet. The NCLT Principal Bench is scheduled to hear the plea on May 8, according to information available on the tribunal's website.

However, according to the report, a SpiceJet spokesperson said that as of now there are no aircraft from this lessor in the airline's fleet and that the development will in no way affect its operations.

"All aircraft from this lessor have already been returned by SpiceJet. We are confident of resolving the matter without court proceedings and we are in discussions with their senior leadership team for the same," the spokesperson said.

The spokesperson also said the comments provided here are without prejudice to the airline's rights and in no way should be deemed as an admission of any liabilities.

Shares of SpiceJet declined 2 per cent to close at Rs 31.93 apiece on the BSE on Friday, the report noted. 

As per the information available on the NCLT website, there are two additional petitions awaiting a hearing for the initiation of insolvency resolution proceedings against SpiceJet, the report said. Willis Lease Finance Corporation filed its plea on April 12, while Acres Buildwell Private Ltd filed its plea on February 4. 

SpiceJet announced in February that it would reduce its debt by $100 million by allowing Carlyle Aviation Partners to purchase a 7.5 per cent stake in the airline by converting outstanding dues and acquiring a shareholding in the cargo business.

The NCLT reserved its order on the Go First petition on Thursday.