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Business News/ Companies / News/  SpiceJet makes part payment to lessors, seeks more time from NCLT
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SpiceJet makes part payment to lessors, seeks more time from NCLT

The court granted an extension to SpiceJet and postponed the hearing to 18 January.

On 4 December, SpiceJet received relief when the NCLT rejected a plea by Willis Lease Finance Corp seeking insolvency.. Photographer: Abhijit Bhatlekar/Bloomberg NewsPremium
On 4 December, SpiceJet received relief when the NCLT rejected a plea by Willis Lease Finance Corp seeking insolvency.. Photographer: Abhijit Bhatlekar/Bloomberg News

New Delhi: SpiceJet on Thursday informed the National Company Appellate Tribunal (NCLT) that it has made partial payments to aircraft lessor Celestial Aviation. The airline sought more time from the court to settle the matter. 

Following the request, the court granted an extension and postponed the hearing to 18 January.

This move comes after the NCLT instructed both parties to find a resolution outside the court in light of the government's notification exempting aircraft and engines from the moratorium.

Celestial Aviation is one of four lessors seeking insolvency proceedings against SpiceJet for defaulting on payments. The other lessors include Willis Lease Finance, Wilmington Trust, and Aircastle Ltd.

On 4 December, SpiceJet received relief when the NCLT rejected a plea by Willis Lease Finance Corp seeking insolvency.

The NCLT had recently issued a notice to SpiceJet on a similar plea filed by business consultancy Raymach Technologies Pvt Ltd, which moved the tribunal against the airline.

SpiceJet has been facing financial strain for a while, entangled in various legal battles across different courts, making it challenging for the airline to stay afloat and avoid possible insolvency. The company announced in a stock exchange filing that it plans to raise fresh capital through the issuance of equity shares at its scheduled board meeting on 11 December.

The airline aims to use its shares as a means to clear all its pending dues. SpiceJet has also offered shares to Sun Group chairman Kalanithi Maran to settle the arbitral award. 

SpiceJet also allocated over 48 million shares to nine aircraft lessors to clear outstanding dues totaling 231 crore (about $28 million). With plans to raise approximately $100 million, promoter Ajay Singh is reportedly in talks with global credit funds to settle its dues.

SpiceJet shares hit the 20% upper circuit limit today to 52.30, following the company's announcement to raise fresh funds. This is also the stock's new 52-week high. The significant uptick was driven by the company's announcement of plans to raise fresh funds to settle its dues.

 

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Published: 07 Dec 2023, 04:13 PM IST
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