SpiceJet closer to settlement with aircraft lessor Celestial, says formalities remain
Spicejet, Monday, informed the National Company Law Tribunal that the airline has settled the matter with aircraft lessor Celestial Aviation, with only a few formalities that needed to be sorted out.
The senior counsel for the budget airline requested a week from the tribunal, after which he noted that Celestial would withdraw the insolvency petition.
On the other hand, the counsel for the aircraft lessor also recognised that settlement talks were underway and that he would withdraw if the deal was finalised.
Celestial Aviation Services Ltd had approached the tribunal in August 2023 to initiate insolvency proceedings against the budget airline for a default of $29.9 million for nine aircraft.
Spicejet has been in settlement talks with the company since October and may finally reach a deal. It had informed the tribunal at an earlier hearing that some funds had been transferred to the lessor as part of the settlement process.
The tribunal, in its order, noted that “both parties were in settlement”; only formalities remained to be worked out, and listed the matter for April 1.
Earlier this month, the budget airline had informed the tribunal that it was also trying to pursue a settlement with its IT vendor Raymach Technologies, which had filed an insolvency petition in November last year for a default of Rs 2.7 crore.
Spicejet, till now, has been successful in settling dues with one of its lessors. It has also staved off two insolvency petitions by Willis Lease Finance Corporation and Wilmington Trust SP Services
