India’s bankruptcy tribunal rejects lessor’s insolvency petition against SpiceJet

The National Company Law Tribunal (NCLT) has dismissed the insolvency petition filed against SpiceJet by aircraft lessor Wilmington Trust SP Services, the airline informed the exchanges on January 30.

"The insolvency plea stands dismissed," a bench of NCLT comprising members Mahendra Khandelwal and Rahul Prasad Bhatnagar said on January 29.

Wilmington had moved an insolvency plea against SpiceJet in June 2023 over unpaid dues. In May 2023, the Directorate General of Civil Aviation (DGCA) deregistered three planes of SpiceJet at the request of lessors, one of the aircraft belonged to Wilmington.

Lessors Wilmington Trust SP Services, Sabarmati Aviation Leasing and Falgu Aviation Leasing approached the civil aviation regulator, requesting deregistration of three Boeing 737-800s over non-payment of dues.

SpiceJet had argued that Wilmington was a part of Aircastle, which had moved two insolvency pleas already.

NCLT had on May 8, 2023, agreed to hear lessor Aircastle's plea seeking unpaid dues from SpiceJet. The airline had said it was confident of resolving the matter without court proceedings. It had then also clarified that it is not admitting any liabilities to Aircastle.

"Presently there are no aircraft from this lessor in our fleet. All aircraft from this lessor have already been returned by SpiceJet. This development, in no manner, affects our operations or operating fleet. We are confident of resolving the matter without court proceedings and we are in discussions with their senior leadership team for the same. The comments provided here are without prejudice to our rights and in no way should be deemed as an admission of any liabilities," it said in the May statement.

SpiceJet shares traded almost 3% higher at ₹66.11 on BSE at 10:40 am.