Last updated: Dec 5, 2023 2:10 PM IST
In some relief for SpiceJet, the National Company Law Tribunal on Monday rejected a plea by aircraft lessor Willis Lease Finance Corp. to initiate insolvency proceedings against the cash-strapped airline. Three other lessors – Celestial Aviation, Wilmington Trust and Aircastle Ltd – have similar pleas pending before NCLT seeking to declare SpiceJet insolvent due to unpaid dues.
Shares of SpiceJet rose 3 percent to a day's high of Rs 47.7 per share on December 5. In the past month, shares of the budget airline have risen 22 percent, compared to a 7 percent rise in the benchmark Sensex.
Around three aircraft lessors have filed four bankruptcy cases against SpiceJet in 2023 for non-payment of dues. Besides the aircraft rental companies, a technical service provider has also filed bankruptcy proceedings against SpiceJet.
Aircastle Ireland, Wilmington and Celestial filed petitions asking NCLT to admit SpiceJet into the insolvency process so that they could collect their dues. Willis' plea was dismissed by NCLT on December 4, 2023 after the tribunal heard SpiceJet's application questioning the maintainability of the plea for over six months.
NCLT had wondered how a fresh plea could be filed against SpiceJet in the same case without informing them. It also wondered how a fresh plea could be initiated in the same case without obtaining permission from the court.
Earlier, in August, SpiceJet allotted more than 48 million shares to nine aircraft lessors to settle outstanding debts worth 2.31 billion rupees (nearly $28 million).
The debt-laden airline has faced operational disruptions across India, recently delaying flight services at Pune, Patna and New Delhi airports.