New Delhi: The National Company Law Tribunal (NCLT) has issued a notice to SpiceJet on the insolvency petition filed by the debt-ridden air carrier's aircraft engine lessor Engine Lease Finance BV.
A single-member NCLT bench has asked SpiceJet to file a reply on the Engine Lease Finance (ELF) petition and directed to list the matter for hearing on August 2, 2024.
During the proceedings, SpiceJet objected to the maintainability of the petition, in which ELF has claimed payment default of more than USD 12 million (approximately Rs 100 crore).
ELF has leased eight engines to SpiceJet. With interest and rent, ELF claims to be owed approximately US$16 million.Earlier, the case was listed before the Delhi-based bench of NCLT on May 29.
SpiceJet had then objected to ELF's plea citing technical glitches and the tribunal had given the engine lessor a chance to rectify the errors.
On Wednesday, the bankruptcy tribunal issued a notice to the airline after the deficiencies were rectified.
Headquartered in Shannon, Ireland, ELF is the world's leading independent engine financing and leasing company.
It entered into an agreement with SpiceJet in 2017 to lease the engines.According to the petitioner, the low-budget carrier has been defaulting on payments since April 2021.
SpiceJet has argued that there is already a dispute between them.
ELF had approached the Delhi High Court against SpiceJet after terminating the lease of two engines in 2023 and sought possession.
The two parties later reached a settlement and the ELF decided not to pursue the matter further.
However, it again approached the High Court alleging that SpiceJet has failed to make payments as per the settlement terms.The matter is still pending before the Delhi High Court.
SpiceJet has faced insolvency petitions from several of its creditors, including Willis Lease, Aircastle Ireland Limited, Wilmington and Celestial Aviation.
NCLT rejected the plea of Willis Lease Finance and Wilmington Trust. SpiceJet settled the matter with Celestial Aviation.
The petitions filed by Aircastle and Alterna Aircraft are pending before the insolvency tribunal.
A single-member NCLT bench has asked SpiceJet to file a reply on the Engine Lease Finance (ELF) petition and directed to list the matter for hearing on August 2, 2024.
During the proceedings, SpiceJet objected to the maintainability of the petition, in which ELF has claimed payment default of more than USD 12 million (approximately Rs 100 crore).
ELF has leased eight engines to SpiceJet. With interest and rent, ELF claims to be owed approximately US$16 million.Earlier, the case was listed before the Delhi-based bench of NCLT on May 29.
SpiceJet had then objected to ELF's plea citing technical glitches and the tribunal had given the engine lessor a chance to rectify the errors.
On Wednesday, the bankruptcy tribunal issued a notice to the airline after the deficiencies were rectified.
Headquartered in Shannon, Ireland, ELF is the world's leading independent engine financing and leasing company.
It entered into an agreement with SpiceJet in 2017 to lease the engines.According to the petitioner, the low-budget carrier has been defaulting on payments since April 2021.
SpiceJet has argued that there is already a dispute between them.
ELF had approached the Delhi High Court against SpiceJet after terminating the lease of two engines in 2023 and sought possession.
The two parties later reached a settlement and the ELF decided not to pursue the matter further.
However, it again approached the High Court alleging that SpiceJet has failed to make payments as per the settlement terms.The matter is still pending before the Delhi High Court.
SpiceJet has faced insolvency petitions from several of its creditors, including Willis Lease, Aircastle Ireland Limited, Wilmington and Celestial Aviation.
NCLT rejected the plea of Willis Lease Finance and Wilmington Trust. SpiceJet settled the matter with Celestial Aviation.
The petitions filed by Aircastle and Alterna Aircraft are pending before the insolvency tribunal.
