Chennai, NFAPost: Budget airline SpiceJet, which has been in the news for its financial problems in the recent times, has said the company has settled a $29.9 million (Rs 250 crore) dispute mutually with Celestial Aviation, a subsidiary of AerCap, one of the largest aircraft lessor groups. through amicable negotiations.
The representatives of both parties informed a bench of National Company Law Tribunal (NCLT) last week that settlement terms had been reached and requested an adjournment. The court granted the adjournment. The matter is now scheduled to be formally withdrawn on March 1, 2024.
SpiceJet recently secured investments totalling Rs 1,060 crore through a preferential issue, with notable investors including Aries Opportunities Fund and Elara India Opportunities Fund. Part of these funds will be allocated towards settling past liabilities.
SpiceJet Chairman and Managing Director Ajay Singh said he is pleased to announce that SpiceJet and Celestial Aviation have successfully resolved our $29.9 million dispute through mutual agreement.
“This settlement marks a significant step forward for both parties and underscores our commitment to finding amicable solutions to complex challenges. With this resolution, we can now focus on revamping our fleet and driving our business forward. I am grateful for the support of our stakeholders, including our investors, as we navigate through this process,” said SpiceJet Chairman and Managing Director Ajay Singh.
Raising the eyebrows of many industry watchers, SpiceJet chairman and managing director Ajay Singh and Busy Bee Airways Private Limited, have jointly submitted a bid for the now-grounded airline GoFirst. The bid has been submitted by Ajay Singh, in his personal capacity, along with Busy Bee Airways Private Limited. SpiceJet’s role as the operating partner for the new airline involves providing essential staff, services, and industry expertise.
SpiceJet is currently in the midst of a revival plan, having successfully completed the first tranche of capital infusion. SpiceJet already holds valid shareholder approval to raise up to Rs 2500 crore through QIP, eliminating the need for further shareholder approval.
SpiceJet has been facing a bunch of winding up and recovery petitions at the NCLT. Celestial Aviation is among five leasing companies that have petitioned the NCLT for the recovery of outstanding payments from SpiceJet.
Other companies include Willis Lease Finance Corp, Wilmington, Aircastle, and Alterna Aircraft BV Ltd. NCLT has rejected the insolvency applications from Wilmington Trust SP Services (Dublin) in January and Willis Lease Finance in December last year.
Adding to the woes of the airline, Alterna Aircraft, an Ireland-based lessor, recently filed an insolvency claim against SpiceJet at the NCLT, demanding the repayment of $11.1 million and £265,000 as mandated by British courts.
