Matter 'practically settled' with Celestial Aviation: SpiceJet to NCLT

SpiceJet on Monday told the National Company Law Tribunal (NCLT) that they have 'practically settled' their dispute with aircraft lessor Celestial Aviation.

Counsel for SpiceJet told the tribunal that they have already paid some money and urged the tribunal to adjourn the case so that they can tell the court of the settlement. The case will now be heard in April 2024.

Counsel for Celestial told the tribunal that while they have received payments, the airline missed certain agreed-on deadlines for payment.

SpiceJet had, in October last year, told the tribunal that it was exploring settlement with Celestial. The airline in December told the tribunal they had made some payments to Celestial.

Besides Celestial, Willis Lease Finance, Aircastle, and Wilmington also moved an application against SpiceJet in 2023 for outstanding dues.

The tribunal had rejected the insolvency applications from Wilmington Trust SP Services (Dublin) in January this year and Willis Lease Finance in December last year.

Shares of budget-carrier SpiceJet zoomed 4.4 per cent to Rs 70.4 apiece on the BSE in Monday's intraday trade after the airline told the NCLT that their dispute with aircraft lessor Celestial Aviation is 'practically settled' and only formalities remain.

SpiceJet is dealing with multiple court cases regarding money owed to former owner Kalanithi Maran, aircraft lessors, and engine lessors.

SpiceJet had announced on Thursday that it had raised a second tranche of Rs 316 crore under the preferential issue of equity and warrants, which was approved by shareholders in early January.

On January 26, the first tranche of Rs 744 crore was infused into the airline. On January 11, the beleaguered airline's shareholders gave their approval to raise a total of Rs 2,241.5 crore through the issuance of equity and warrants – Rs 1,591.5 crore by issuing equity to 58 entities and Rs 650 crore by issuing warrants on a preferential basis to five other entities.

This means that a remaining Rs 1,181.5 crore is yet to be infused into the airline by the investors. These 63 entities include financial institutions, foreign institutional investors, high-net-worth individuals, and private investors such as Preeti Mahapatra, Harihara Mahapatra, Elara India Opportunities Fund, and Aries Opportunities Fund.