Lessor Aircastle files case against SpiceJet to initiate insolvency process

Aircastle, one of the lessors of SpiceJet, has filed a case at the National Company Law Tribunal (NCLT) seeking initiation of an insolvency process against the airline for non-payments of dues.

The case has been filed under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016, which allows an operational creditor, which has not received payment from the corporate debtor, to file a case with NCLT to initiate a “corporate insolvency resolution process”.

The first hearing of Aircastle’s case will take place on Monday at the Delhi bench of NCLT. SpiceJet has been making losses since FY19.

When asked about Aircastle’s case, SpiceJet spokesperson said, “Since they have gone to the courts, we would not like to comment on the specifics at this stage. Nonetheless, we are confident of resolving the matter without court proceedings and we are in discussions with their senior leadership team. The comments provided here are without prejudice to our rights and in no way should be deemed as admission of any liabilities.”