SpiceJet Airline In Trouble, Ireland-Based Lessor Seeks Bankruptcy Proceedings

Amidst Go First bankruptcy, NCLT will hear the insolvency plea filed by Aircastle against SpiceJet on May 17, while SC will also hear Credit Suisse contempt plea against the airline.

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The next and latest in line after Go First, SpiceJet airline is facing bankruptcy proceedings as the Ireland-based aircraft lessor Aircastle Ltd has moved the principal bench of the National Company Law Tribunal (NCLT) to launch a bankruptcy process against the airline. Agreeing to hear the lessor's plea, a two-member bench of the NCLT issued a notice to the airline and posted the matter for further consideration on May 17. The bench led by NCLT President Ramalingam Sudhakar directed SpiceJet to attend the hearing on the given date.

Claiming default in dues payment, Aircastle has sought initiation of corporate insolvency proceedings against SpiceJet. A spokesperson for SpiceJet commented that the notice was issued routinely in connection with the Aircastle matter.

"In the Aircastle issue, notice was issued in normal course. There was no adverse ruling against SpiceJet. The court has recognised the fact that parties are under settlement discussions and they can continue to pursue the same," the spokesperson said. "There is no impact on flight operations," the spokesperson added.

SpiceJet is facing a separate plea by Credit Suisse in the apex court alleging contempt of court. The case dates back to August 2022, when SpiceJet and Credit Suisse had agreed to settle a payment dispute of $24 million.

In April this year, however, Credit Suisse moved the top court alleging that the airline had failed to pay $4.9 million, as per the terms of the settlement. Before the top court, the airline's counsel had assured the Supreme Court that it will make the payment in two tranches in April and May.

While the NCLT will hear the insolvency plea filed by Aircastle against SpiceJet on May 17, the SC will also hear Credit Suisse contempt plea to verify the payment status.