Madras HC allows lessors to issue notice to SpiceJet on winding up petitions

Five lessors claims the Airline need to owe around Rs 80 cr outstanding

The high court here decided to issue a notice to SpiceJet on winding-up petitions filed by five leasing companies, which say they're owed Rs 80 crore.

The companies are B&B Air Acquisitions Leasing, Steddel, Torodell, Xavier Dell and Virgodell.  L Maithili, counsel for the leasing companies, said their agreement with the airline had been terminated in December, followed in January with the statutory notice. Yet, the airline hadn’t replied.

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

“We reiterate that discussions have been ongoing with the lessors for an amicable settlement. SpiceJet fully expects the matter will be resolved shortly and positively with the lessors, and there will be no grounding of aircraft or disruption of operations. Our operations are normal, with on-time performance now amongst the top two in the domestic market,” went the statement.

Early this week, SpiceJet said it had resolved a dispute with one of the two lessors which had moved the HC at Delhi against it and secured an order for de-registration of six Boeing 737 aircraft. The airline said it had entered into an agreement with Wilmington Trust SP Services (Dublin), which has links to leasing company BOC Aviation, from which it had leased three aircraft.

In January, the then promoter of SpiceJet, Kalanithi Maran, announced a plan to sell all shares to Ajay Singh, the earlier promoter. Singh had to infuse Rs 1,500 crore into the airline in three tranches and the ownership would be transferred to him, through the handing over of the 58 per cent stake of Maran and his company, Kal Airways. The transfer was reportedly completed last month.

Some cases had emerged earlier, which according to the company was when the airline was in a financial crisis in December, before the change of ownership and infusion of new funding.

“SpiceJet would like to assure its partners and customers that the situation is very different from what it was in late 2014, it has received its first tranche of funding already and is in the process of paying off creditors in a phased manner,” the company stated last Saturday.

Adding: “The change of ownership and infusion of fresh funding has assured SpiceJet’s future, and our creditors are aware and appreciative that the best outcome for all parties would be a fully revived and healthy SpiceJet, and are working jointly towards that outcome.”

LEGAL TANGLE OF THE BELEAGUERED CARRIER

• L Maithili, counsel for the leasing firms, said their agreement with the airline had been terminated in Dec
   
• This termination was followed with the statutory notice in Jan
   
• The airline on Wednesday said there was only one lessor, BBAM, with five aircraft, each leased through a separate Special Purpose Vehicle
   
• Earlier, SpiceJet said it had resolved a dispute with one of the two lessors which had moved the HC at Delhi against it