The National Company Law Tribunal (NCLT) on Tuesday suggested that SpiceJet settle the issues with lessors who have sought the initiation of insolvency proceedings against the airline.
The tribunal's suggestion came amid a crisis at the carrier, where SpiceJet has issued shares in lieu of dues to nine aircraft lessors.
The NCLT was hearing a plea filed by Celestial Aviation Services Ltd, an operational creditor that had requested the initiation of insolvency proceedings against the airline.
A two-member NCLT bench observed that the airline is settling with some aircraft lessors by converting debt into equity.
"SpiceJet seems to be settling with other lessors by giving shares. Why don't you settle with these lessors as well?" the bench, comprising M M Khandelwal and Rahul Prasad Bhatnagar said.
This remark pertained to Celestial Aviation Services and four other lessors who have filed pleas against the airline.
Furthermore, the bench suggested that, in its opinion, it is in the best interest of all parties involved to settle with the lessors and recommended that they convene to resolve the disputes.
The tribunal also noted that "banks have not filed insolvency petitions, only lessors have come forward."
06/09/2023 Republic World
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