NCLT asks SpiceJet to resolve issues with lessors

New Delhi: The National Company Law Tribunal on Tuesday asked SpiceJet to resolve its issues with lessors, while hearing the insolvency plea filed by Celestial Aviation.

The court, which also verbally asked the airline to offer shares to the lessor, deferred the matter for 15 September.

On Monday, SpiceJet said it will allot 48.1 million shares on a preferential basis to nine of its aircraft lessors to clear dues worth ₹231 crore.

The allotment committee of the board of directors of the company passed several resolutions, including a ₹2,500 crore fundraiser and a preferential issue of shares to lessors at an issue price of ₹48 each to clear its outstanding dues, the low-fare airline said in a stock exchange filing.

Celestial Aviation is the fourth lessor to file a case against SpiceJet in the NCLT for pending dues. Other lessors with pending cases against the airline include Willis Lease Finance Corp, Wilmington, and Aircastle.

Aircastle and Wilmington successfully deregistered aircraft from DGCA in March using irrevocable de-registration and export request authorizations.

During the proceedings, SpiceJet argued that Willis Lease Finance and Wilmington are not direct lessors of the company, as per the agreements presented in court. 

In response, Willis Lease Finance said it is a service provider on behalf of the actual lessors mentioned in the agreements and must be treated as lessors on those grounds in the case. Similarly, Wilmington contended that they are trustees of the lessor Aircastle and should be allowed to proceed with the insolvency plea against SpiceJet.

SpiceJet is also facing legal battles in the High Court, as the Delhi High Court has ordered the airline to pay ₹100 crore to former owner Kalanithi Maran by September 10th to settle money owed. SpiceJet's total debt to Maran amounts to ₹397 crore. The High Court is scheduled to issue its order in this case on September 11th.