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SpiceJet informs NCLT it is in final stages of settlement

Oct 11, 2023

By: BlinkX Research Team

The dispute involving SpiceJet and aircraft lessor Celestial Aviation Services Ltd was postponed by the National Company Law Tribunal (NCLT) on Tuesday after both parties informed the court that they were nearing an agreement. The case will be heard by the court again on November 7.

One of the four lessors who filed a case against SpiceJet before the NCLT over unpaid debts is Celestial Aviation. The other three are Willis Lease Finance Corp., Wilmington, and Aircastle.

Previously, the tribunal had urged SpiceJet to give the lessors shares in order to settle its differences with them. SpiceJet cleared debts of 231 crore last month by allocating 48.1 million shares on a preferential basis to nine of its aircraft lessors.

Media reports state that Aircastle, another lessor, was approached by SpiceJet to settle their debts with equity, but the lessor turned down the offer.

The NCLT hearing for Willis Lease Finance is nearing its conclusion, and a ruling is anticipated soon. Based on the contracts that were shown in court, SpiceJet claimed that Wilmington and Willis Lease Finance are not the company's direct lessors. Willis Lease Finance replied that it should be recognised as a lessor on the grounds that it was a service provider acting on behalf of the actual lessors identified in the agreements. Similar to this, Wilmington argued that they should be permitted to pursue the bankruptcy claim against SpiceJet because they were trustees for the lessor Aircastle.