SpiceJet, aircraft lessor Celestial Aviation working towards settlement

Budget carrier SpiceJet and aircraft lessor Celestial Aviation are working towards settlement, which is in the advanced stage, insolvency tribunal NCLT was informed on Tuesday.

During the proceedings, counsel appearing in the matter informed about the development and requested the National Company Law Tribunal (NCLT) to adjourn the matter, which was accepted.

The development came during the hearing of a plea filed by Celestial Aviation Services Ltd, an operational creditor, to initiate insolvency proceedings against the airline.

A two-member NCLT bench directed to list the matter on November 7 for the next hearing.

According to some reports, Celestial Aviation Services Ltd is claiming a default of USD 29.9 million for nine aircraft. It is the fifth lessor, which had moved against SpiceJet.

Some other lessors such as Willis Lease Finance, Aircastle and Wilmington have also moved pleas to initiate insolvency proceedings against SpiceJet before the NCLT.

Earlier on September 5, NCLT suggested that SpiceJet settle the issues with lessors that have sought initiation of insolvency proceedings against it.

The tribunal's suggestion came against the backdrop of the crisis-hit carrier issuing shares in lieu of dues to nine aircraft lessors.

Last week, the government notified removing aviation lease agreements, which include - aircraft, engines and related parts - from moratorium under the Insolvency and Bankruptcy Code, 2016.