Celestial Aviation was among numerous aircraft leasing businesses that had approached the NCLT for recovery of outstanding payments from the debt-laden airline.
SpiceJet has settled its $29.9 million dispute with aircraft lessor Celestial Aviation Services, removing a major roadblock as the ailing airline attempts to regain its footing.
The debt-ridden airline is entangled in a number of legal issues with creditors and aircraft leasing companies over outstanding payments. SpiceJet recently received an additional ₹316 crore in investment to support its expansion and debt repayment.
The airline has raised ₹1,060 crore, or over $130 million, from its preferred offer.
“With this resolution, we can now focus on revamping our fleet and driving our business forward,” SpiceJet chairman and managing director Ajay Singh said in a statement on Wednesday, according to Mint.
SpiceJet informed the National Company Law Tribunal on February 26 that it had settled its dispute with Celestial Aviation and simply needed to complete procedures. The airline had requested a week to thoroughly address the problem.
According to Mint, “Representatives from both parties informed a bench of the NCLT last week that settlement agreements had been agreed upon and asked for an adjournment. The court gladly allowed the adjournment. SpiceJet stated that the matter would be formally withdrawn on March 1, 2024.
Celestial Aviation filed insolvency proceedings against SpiceJet in August, alleging the airline’s refusal to pay $29.9 million for leasing nine aircraft. It was one of five leasing businesses that petitioned the NCLT to recover outstanding payments from SpiceJet.
The tribunal has since denied insolvency claims from Wilmington Trust SP Services (Dublin) and Willis Lease Finance Corp.
Alterna Aircraft BV Ltd., an Ireland-based lessor, recently filed an insolvency suit against SpiceJet before the NCLT, seeking recovery of $11.1 million and £265,000 as required by British courts.
Another airplane lessor. Aircastle’s petition is still pending before the NCLT. The company has declined SpiceJet’s offer to settle the matter through a share allotment.
SpiceJet was ordered by the Delhi High Court on February 22 to pay $2 million to engine lessors EAM France 01 SAS and Sunbird France 02 SAS. In addition, the Supreme Court has ordered SpiceJet to pay Credit Suisse $1.25 million by March 15, and chairman Singh must appear in court a week later.
