No Respite For Troubled SpiceJet As NCLT Issues Notice Over Another Insolvency Plea

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New Delhi: The National Company Law Tribunal (NCLT) on Monday issued a notice to embattled low-cost carrier SpiceJet over a petition by Techjockey Infotech Pvt Ltd, one of its operational creditors. 

Software solutions startup Techjockey Infotech filed an insolvency case against cash-strapped airline SpiceJet for an alleged default of around Rs 1.18 crore.

The petition was filed under section 9 of the Insolvency and Bankruptcy Code. It aims to initiate insolvency proceedings against the airline for default that stems from a 2021 agreement wherein SpiceJet acquired cloud services.

The NCLT has admitted the case for consideration and issued a notice to SpiceJet. The case is scheduled to be heard on November 14.

This case adds to several insolvency cases against SpiceJet for unpaid dues to various vendors and aircraft lessors. The pleas from Aircastle, AWAS 36698 Ireland, AWAS 36694 Ireland, and AWAS 36695 remain pending, along with Shannon Engine Support Ltd and Engine Lease Finance B.V.

Last week, the Supreme Court upheld the Delhi High Court’s directive requiring SpiceJet to ground and return three aircraft engines leased from French companies due to non-payment of dues, while dismissing the airline’s appeal.

The airline had said in a statement that it is currently in discussions with the aircraft lessor to reach an amicable settlement. “It is important to note that two of the three engines in question are already grounded, and our operations remain completely normal and unaffected. We remain committed to ensuring seamless operations," the airline added.

Meanwhile, SpiceJet hit a new low with its market share shrinking by 80 bps to 2.3 per cent (month-on-month) in August, largely due to financial woes and increased grounding, carrying just 3.01 lakh domestic passengers. 

Also, embattled SpiceJet’s board has approved the issuance and allotment of 48.70 crore equity shares to qualified institutional buyers at Rs 61.60 per share to raise Rs 3,000 crore.