Thursday, July 20, 2023

India's SpiceJet challenges lessors' insolvency petitions

SpiceJet (SG, Delhi International) has challenged the multiple insolvency petitions filed by Aircastle and Wilmington Trust SP Services (Dublin), causing the National Company Law Tribunal (NCLT) to grant more adjournments.

Krishnendu Dutta, appearing for the distressed budget carrier at the tribunal on July 17, argued against the validity of Aircastle running two simultaneous insolvency petitions and Wilmington having three insolvency petitions. However, as reported in India's Economic Times, Chinmoy Sharma, appearing for Aircastle, argued that the lessor was within its rights to file separate petitions, given SpiceJet defaulted on multiple contracts covering different aircraft and different invoices. Sharma also noted there was precedence from earlier judgements allowing a creditor to file more than one petition against a debtor. Aircastle is chasing USD5.9 million from SpiceJet.

Ritesh Singh, appearing for Wilmington, said the three separate petitions provided clarity and simplicity, and also argued that there was no prohibition on filing multiple petitions, saying that each default required a separate petition. Dutta requested and was granted, ten days to file a reply to the lessor's arguments.

20/07/2023 ch-aviation

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