SpiceJet Gets Notice From NCLT Regarding Their Insolvency Petition

On May 8, SpiceJet received a notification from the National Company Law Tribunal in response to a petition filed by aircraft lessor Aircastle (Ireland) Ltd that asked for the start of insolvency resolution procedures against the low-cost airline.

The Notice

A two-member Principal bench of the NCLT, presided over by President Ramalingam Sudhakar, issued the notice to SpiceJet and instructed it to schedule the case for the next hearing on May 17. 

A SpiceJet representative stated the notification was issued in the usual course of business in the case of Aircastle.

The complaint against SpiceJet was made on April 28 by Aircastle.

SpiceJet stated earlier in the week that it did not have any Aircastle-made aircraft in its fleet and that the petitioner’s submission would not have any impact on the airline’s operations.

According to information, SpiceJet is the subject of two further petitions for insolvency resolution procedures before NCLT. These include the ones from Acres Buildwell Private Ltd, filed on February 4, and Willis Lease Finance Corporation, submitted on April 12.

The Aircastle Issue

Aircastle, a lessor of planes, filed the plea against SpiceJet last week. 

The operational creditor has petitioned the NCLT for the outset of Corporate Insolvency Resolution Process (CIRP) proceedings under Section 9 of the Insolvency and Bankruptcy Code (IBC).

As per CNBCTV18 reports, the NCLT has recently also heard peer Go First’s petition, in which the airline requests a temporary halt to operations and bankruptcy protection. Regarding the airline plea, the panel has reserved its order. Go First’s aircraft lessors rejected the petition because a moratorium would prevent other parties from executing their contractual rights.

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