In some relief for SpiceJet, the National Company Law Tribunal on Monday dismissed a plea by aircraft lessor Willis Lease Finance Corp. to initiate insolvency proceedings against the cash-strapped airline. Three other lessors—Celestial Aviation, Wilmington Trust, and Aircastle Ltd—have similar pleas pending with NCLT to admit SpiceJet into insolvency over unpaid dues.
Shares of SpiceJet surged 3 per cent to day’s high of Rs 47.7 per share on December 5. In the past one month, the stock of this low-cost carrier airline soared 22 percent as against 7 percent rise in the benchmark Sensex.
Around 3 aircraft lessors have filed four insolvency pleas against SpiceJet in 2023 for the non-payment of dues. Other than the aircraft lessors, a tech services provider has also moved an insolvency plea against SpiceJet.
Aircastle Ireland, Wilmington and Celestial filed petitions, asking NCLT to admit SpiceJet to the insolvency process to enable them to recover their dues. Willis’ plea was dismissed on December 4, 2023 by NCLT after the tribunal heard SpiceJet’s application questioning the maintainability of the plea for over six months.
NCLT had questioned how a fresh plea could be filed against SpiceJet for the same cause of action without notifying them. It also questioned how a new plea could be initiated for the same cause of action, without obtaining the court’s permission to do so.
Earlier, in August, SpiceJet allotted over 48 million shares to nine aircraft lessors to clear outstanding dues worth 2.31 billion rupees (nearly $28 million).
The debt-laden airline carrier has been facing operational disruptions across India, delaying flight services recently in Pune, Patna, and New Delhi airports.
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