Leasing companies suspend court proceedings against SpiceJet

Five lessors had filed a winding-up petition at the Madras HC saying the carried owed them Rs 80 cr

SpiceJet Ltd said on Wednesday the five leasing companies that had filed a winding-up petition against the airline had decided to suspend the court proceedings, following discussions.

The petition had been filed with the Madras High Court. The plea said the airline owed the five   leasing companies Rs 80 crore.

SpiceJet told the BSE on Wednesday it had reached an in-principle understanding with its five lessors.

“Under the said understanding, the lessors have agreed to suspend court proceedings (including winding-up proceedings) and deregistration process of aircraft subject to SpiceJet satisfying the terms of settlement and parties executing definitive agreements. It may be noted, the lessors have filed up a winding up petition at Madras High Court against the airline."

On March 27, the Madras High Court had issued a notice to SpiceJet on the winding-up petitions filed by the five leasing companies — B&B Air Acquisitions Leasing, Steddel, Torodell, Xavier Dell, and Virgodell. The companies had said their agreement with the airline had been terminated in December 2014, followed by the statutory notice in January. Yet, the airline hadn’t replied.

In an earlier statement, the airline said there was only one lessor, BBAM, with five aircraft, each leased through a separate Special Purpose Vehicle.

This was followed by a statutory notice in January 2015. Yet, the airline hadn’t replied. In January, Kalanithi Maran, the then promoter of SpiceJet, had announced a plan to sell all shares to former promoter Ajay Singh. Singh had to infuse Rs 1,500 crore into the airline in three tranches, and the ownership, with the 58 per cent stake of Maran and his company, Kal Airways, would be transferred to him. The transfer was reportedly completed last month.