New Delhi: In some relief for low-cost carrier SpiceJet, the National Company Law Tribunal (NCLT) on Monday dismissed an insolvency plea by aircraft lessor Wilmington Trust SP Services (Dublin).
Wilmington Trust is one of five lessors who approached the NCLT with a plea to admit SpiceJet into insolvency over unpaid dues. Willis Lease Finance, Celestial Aviation, Wilmington Trust, Aircastle, and Alterna Aircraft are the other lessors.
A similar plea by Willis Lease Finance was also dismissed by the court. However, appeals from the remaining landlords are still pending.
During the proceedings, SpiceJet submitted various documents, such as leases and invoices, to show that Wilmington was not an actual operational creditor but merely acting as a trustee.
SpiceJet argued that the owner mentioned in the Wilmington case was not the company that filed the petition but BOC Aviation Ltd, which later transferred it to Aircastle (Ireland) Ltd. Therefore, SpiceJet contended that the petitioner could not be considered the operational creditor.
In response, Wilmington argued that the lease was in the name of the lessor, and even the registration of aircraft by the civil aviation regulator, the Director General of Civil Aviation, was done in its name.
SpiceJet is facing legal disputes with other lessors over pending fees as well. The Delhi high court on Monday ordered SpiceJet to pay $4 million to two engine lessees, Team France 01 SAS and Sunbird France 02 SAS, by February 15. Failure to do so could cause the leased engines to ground.
Meanwhile, in an internal memo to its senior staff on Monday, the airline said it now has a bank balance of more than ₹900 crore, inclusive ₹160 crore was given as installment under the government’s Emergency Credit Line Guarantee Scheme.
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Published: 29 Jan 2024, 17:44 IST