New Delhi:
Crisis-hit carrier SpiceJet can settle issues with lessors that have sought initiation of insolvency proceedings against it, the National Company Law Tribunal has suggested. The tribunal’s suggestion came amid Spicejet’s move to issue shares in lieu of dues to nine aircraft lessors.
On Tuesday, the NCLT was hearing a plea filed by Celestial Aviation Services Ltd, an operational creditor which had filed an appeal to initiate insolvency proceedings against the airline.
A two-member bench of the tribunal observed that the airline is settling with some of aeroplane lessors by converting debt into equity.
“SpiceJet seems to be settling with other lessors by giving shares, Why don’t you settle with these lessors as well?” said the bench comprising M M Khandelwal and Rahul Prasad Bhatnagar.
This was in reference to Celestial Aviation Services and four other lessors who have filed pleas against the airline.
The bench said in its opinion, it is in its best interest to settle with the lessors and suggested that all of them sit together and resolve the disputes.
The tribunal also observed that “banks have not filed insolvency petitions, only lessors have come”.
On Monday, SpiceJet announced the allotment of 4.81 crore equity shares on a preferential basis to nine of its aircraft lessors to clear outstanding dues of Rs 231 crore.
The NCLT is scheduled to hear pleas of all SpiceJet lessors on September 15.
According to regulatory filings, nine lessors who have been allotted shares include SASOF III (A13) Aviation Ireland DAC, SASOF III (A6) Aviation Ireland DAC, SASOF III (C) Aviation Ireland DAC, SASOF III (E) Aviation Ireland DAC, SASOF III (A19) Aviation Ireland DAC, SASOF II (J) Aviation Ireland DAC Citrine Aircraft Leasing Limited, Fly Aircraft Holdings Seven Limited, Fly Aircraft Holdings One Limited.