Fresh insolvency plea by aircraft engine lessor against SpiceJet for $12 million arrear

A fresh insolvency plea has been filed in the National Company Law Tribunal (NCLT) against homegrown budget carrier, SpiceJet, over arrears against aircraft engines leasing.

According to a report in The Economic Times, Engine Lease Finance BV has filed a petition in NCLT seeking insolvency proceedings against SpiceJet over arrears amounting to $12 million for the aircraft engines it had leased.

The engine lessor is the latest among many to have approached courts accusing the airline of defaulting on payments and has sought repossession of the engines.

SpiceJet has argued that the lessor’s demand notice did not comply with the required format under IBC, and requested more time as it received the documents on Wednesday morning only. The lessor cited email exchanges between the companies as proof of default, the report added. 

Meanwhile, shares of SpiceJet had ended 0.23 per cent lower at Rs 57.19 on Wednesday. Market cap of the airline stood at Rs 4,480.29 crore.

This development comes after another recent tussle between the airline and Kalanithi Maran in a long-standing share transfer case. SpiceJet has sought a refund of Rs 450 crore out of the Rs 730 crore it previously paid to former promoter Kalanithi Maran and his firm KAL Airways, after Delhi High Court on May 17 overturned a previous order by a single-judge bench, enabling SpiceJet to claim the substantial refund based on legal advice. 

But KAL Airways and Kalanithi Maran believe the Delhi High Court order to be deeply flawed and have announced that they would see more than Rs 1,323 crore in damages from the airline and its chief Ajay Singh. 

SpiceJet responded to KAL and Maran and said this assertions are not “legally untenable” and a “regurgitation of previously rejected claims” by Arbitral Tribunal and then the Delhi High Court.