Engine Lease Finance files fresh insolvency plea against SpiceJet

economictimes.indiatimes.com:

Engine Lease Finance BV has filed a petition in the National Company Law Tribunal (NCLT), seeking insolvency proceedings against SpiceJet over arrears of more than $12 million against aircraft engines it had leased to the budget airline.

Engine Lease Finance is the latest of engine lessors that have approached courts accusing SpiceJet of defaulting on payments and seeking repossession of engines.

The counsel cited email exchanges between the companies as proof of default. He also told the tribunal that the default amount did not fall under the Section 10 A of the Insolvency and Bankruptcy Code. Under the section, initiation of insolvency proceedings had been suspended for defaults during the pandemic period.

Responding to Engine Lease Finance's petition, SpiceJet argued that the lessor's demand notice did not comply with the format required under the IBC. Its counsel requested for more time as it received documents only on Wednesday morning. The tribunal will hear the matter on Thursday.