SpiceJet Lessor Calls Airline’s Settlement Offer ‘Not Good Enough’ In NCLT

Hearing in insolvency plea against SpiceJet in NCLT will be held on May 25

SpiceJet lessor Aircastle, which is based in Ireland, informed the National Company Law Tribunal (NCLT) that airline’s settlement offer is not good enough. 

The lessor also told the tribunal that talks over airline’s missed payments had not reached anywhere. 

Reuters reported citing a lawyers that the airline owes around $6 million to the Ireland-based firm. 

Aircastle had sought to initiate bankruptcy proceedings against the airline earlier this month after it failed to pay lease rentals and other dues. 

NCLT has asked SpiceJet to file its response to the insolvency plea and explore option to reach a settelment. 

Directorate General of Civil Aviation (DGCA) had received requests from the lessors of Spicejet to deregister several aircraft from the airline’s fleet. 

On the issue, SpiceJet offered a clarification which said, “Two of the three planes are grounded for a long period now and the same doesn’t affect our operations. We hold a very good relationship with the lessor and are in discussions to resolve the matter.”

Wilmington Trust SP Services, Sabarmati Aviation Leasing, and Falgu Aviation Leasing were among the lessors who approached the DGCA. 

A statement of the airline quoted by Reuters said ,“Our lessors have supported us through the thick and thin and continue to do so and we are grateful for their support and confidence.” 

The airline added that it has no plans to file for insolvency.

The developments in the SpiceJet case comes amid the Go First crisis which has raised fears of lessors. 

However, Spicejet has assured that it is working to revive its grounded fleet using its own funds and $50 million line of credit through an Indian government scheme.

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