NCLT to hear Spicejet insolvency plea on May 25 as talks with lessor fail

Tribunal gives SpiceJet a week to respond to Dublin-based Aircastle, which sought initiation of insolvency proceedings against the airline under IBC over unpaid dues of Rs 49 crore

Bhavini Mishra New Delhi
The Delhi-bound SpiceJet airplane following its emergency landing after it caught fire mid-air, at Jai Prakash Narayan Airport, in Patna (Photo: PTI)

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National Company Law Tribunal (NCLT), Delhi on Wednesday has given Spicejet a week to file a reply on a plea by airline’s lessor Aircastle over unpaid dues of Rs 49-odd crore.
The tribunal told both parties to 'be prepared with a resolution or be prepared for arguments on insolvency' in the next hearing on May 25.

The bench has also told them to work towards resolving the issue.
Aircastle said the settlement talks with the airline had not yielded any results as the offer by the airline was unacceptable.

Dublin-based Aircastle moved the NCLT seeking the initiation of insolvency proceedings against the airline under Section 9 (application for initiation of corporate insolvency resolution process by the operational creditor) of the Insolvency and Bankruptcy Code.  
A two-member Principal bench of President Ramalingam Sudhakar and Member Avinash K Srivastava had issued a notice to Spicejet on May 8 to file their reply.

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Commenting on the case, a Spicejet spokesperson had said, “In the Aircastle issue, notice was issued in the 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.”
According to the NCLT website, two more petitions for insolvency resolution proceedings against SpiceJet are pending. The plea by Willis Lease Finance Corporation was filed on April 12 and the one by Acres Buildwell Private Ltd was filed on February 4.

First Published: May 17 2023 | 2:23 PM IST

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