Lessor files bankruptcy proceedings before NCLT against SpiceJet for an amount of $12 million
Spicejet (Photo: Wikipedia)
Engine Lease Finance BV, an aircraft engine lessor of SpiceJet, has filed a bankruptcy proceeding with the NCLT against the debt-ridden airline for non-payment of over USD 12 million (approximately Rs 100 crore).
Engine Lease Finance (ELF) has leased eight engines to SpiceJet. In addition to interest and rent, ELF has claimed an amount of approximately USD 16 million.
The matter was referred to a Delhi-based bench of the National Company Law Tribunal (NCLT) on Wednesday, which heard the matter briefly. SpiceJet’s counsel sought time to respond to the petition filed by Engine Lease Finance.
On this, the NCLT bench comprising members Mahendra Khandelwal and Sanjeev Ranjan directed SpiceJet to file its response to the petition.
Headquartered in Shannon, Ireland, ELF is the world’s largest independent motorcycle financing and leasing company.
It entered into an agreement with SpiceJet in 2017 to lease engines. According to the petitioner, the low-budget airline has been defaulting on its payments since April 2021.
During the hearing, SpiceJet’s counsel argued that there is already a dispute between them.
Earlier, ELF had approached the Delhi High Court in 2023 against SpiceJet after terminating the lease agreement for two engines and sought possession.
Later, both parties reached a settlement and ELF decided not to pursue the case.
However, it again approached the Supreme Court after alleging that SpiceJet had failed to pay as per the terms. The case is still pending in the Delhi High Court.
SpiceJet has faced bankruptcy filings from several creditors, including Willis Lease, Aircastle Ireland Ltd, Wilmington and Celestial Aviation.
The NCLT rejected the pleas of Willis Lease Finance and Wilmington Trust. Spicejet settled the case with Celestial Aviation.
The petitions filed by Aircastle and Alterna Aircraft are pending before the insolvency tribunal.
Both Wilmington Trust and Willis Lease Finance have moved the National Company Law Appellate Tribunal (NCLAT) challenging NCLT’s dismissal of their insolvency petitions.
(Only the headline and image of this report may have been reworked by Business Standard staff; the rest of the content is automatically generated from a syndicated feed.)
First print: May 30, 2024 | 4:45 am IST