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The Delhi High Court has adjourned the hearing of a lawsuit against no-frill carrier SpiceJet Ltd by aircraft lessor Goshawk and its trustee Wilmington Trust SP Services Dublin Ltd regarding unpaid dues to 14 December after passing an interim order in September preventing the airline from transferring its assets to the tune of decretal amount.

Goshawk and its trustee had leased three planes to SpiceJet, including two Boeing 737Max planes and one Boeing 737-800 aircraft. When SpiceJet decided to spin off the assets, the lessors approached Delhi high court to stop the transfer until the lease dues were paid.

According to reports, SpiceJet’s pending dues for the three aircraft stood at about $16.2 million.

A source with direct knowledge of the matter said that both parties have verbally agreed to settle the lawsuit.

"The case has been settled," the person said requesting anonymity.

However, a spokesperson of Goshawk said that no settlement has been reached with SpiceJet in this matter, which continues to be the subject of litigation.

A SpiceJet spokesperson said that there is no stay from the court on the transfer of logistics business to the subsidiary.

"The plan for capital infusion in logistics arm is progressing," the SpiceJet spokesperson added.

SpiceJet had earlier in September said that it has received shareholders’ approval to transfer its cargo and logistics services business to its subsidiary, SpiceXpress and Logistics Pvt. Ltd (SpiceXpress), which will result in a one-time gain of 2,555.77 crore for the airline. The slump sale was expected to wipe out a substantial portion of the company’s negative net worth, SpiceJet had said.

A slump sale is the transfer of one or more undertakings for a lump sum consideration without values being assigned to the individual assets and liabilities.

The move by SpiceJet to segregate its profitable logistics and cargo business will help the airline raise funds at a time the airline’s auditors, Walker Chandiok & Co LLP, have raised doubts about the company’s ability to continue as a going concern.

Mounting losses have resulted in complete erosion of the airline’s net worth, with its liabilities exceeding its assets by 6,123.73 crore at the end of 30 September.

SpiceJet had on 17 November announced that it has entered into a settlement agreement with Boeing Co, with the Chicago-headquartered company agreeing to provide certain accommodations and settle the outstanding claims related to the grounding of 737 Max aircraft and its return to service.

Though SpiceJet officials didn’t specify the compensation amount, it is said to be both in cash and kind.

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