Wednesday, May 17, 2023

SpiceJet’s settlement offer not good enough: Airline’s lessor Aircastle tells NCLT

Ireland-based Aircastle, one of budget airline SpiceJet’s lessors, on Wednesday told the National Company Law Tribunal (NCLT) that the airline’s settlement was not good enough. Aircastle added that talks with SpiceJet over missed payments were inconclusive. The airline owes Aircastle around $6 million, a lawyer present at the hearing told news agency Reuters.

The NCLT has listed Aircastle’s insolvency plea against SpiceJet on May 25. The lessor claimed that the airline has unpaid dues and sought insolvency proceedings under Section 9 of the Insolvency and Bankruptcy Code (IBC). The tribunal asked the airline to file a response to the insolvency plea and explore options for settlement.

Aircastle’s plea comes after lessors of the airline submitted requests to the civil aviation regulator Directorate General of Civil Aviation (DGCA) to deregister three aircraft out of the airline’s fleet. All three planes belong to SMBC, one of the SpiceJet’s many lessors. The aircraft are being held under different portfolios but all of them belong to SMBC.

Other lessors who sought deregistration of SpiceJet’s aircraft were Wilmington Trust SP Services, Sabarmati Aviation Leasing, and Falgu Aviation Leasing.

17/05/2023 Mehak Agarwal/Business Today

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