Spicejet faces another insolvency plea from operational creditor; NCLT issues notice

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The National Company Law Tribunal (NCLT) on Monday (September 23, 2024) issued notice to debt-ridden air carrier SpiceJet over the plea filed by one of its operational creditors.

A two-member NCLT bench, comprising Mahendra Khandelwal and Sanjeev Tanjan, has directed Spicejet to file a reply and list the matter for the next hearing on November 14.

SpiceJet is already facing several insolvency petitions from creditors, including Willis Lease, Aircastle Ireland Ltd, Wilmington and Celestial Aviation at NCLT and the appellate tribunal NCLAT.

The latest petition is by Techjockey Infotech Pvt Ltd, an operational creditor, filed under section 9 of the Insolvency & Bankruptcy Code, through Karanjawala & Co.

Techjockey Infotech claimed a default of nearly ₹1.2 crore owed by SpiceJet against software services availed by them and requested to initiate a corporate insolvency resolution process (CIRP) against the air carrier.

It contended that its debt has been acknowledged by SpiceJet, though it has not been yet complied.

Earlier in June, NCLT had issued notice to SpiceJet over the petition filed by Engine Lease Finance (ELF). Based in Ireland, ELF is the world’s leading independent engine financing and leasing company and claimed a payment default of over $12 million (around ₹100 crore).

Also read | NCLT rejects Wilmington’s insolvency plea against SpiceJet

The NCLT rejected the pleas of Willis Lease Finance and Wilmington Trust. Spicejet settled the case with Celestial Aviation.

The petitions filed by Aircastle and Alterna Aircraft are pending before the insolvency tribunal.

Both Wilmington Trust and Willis Lease Finance have moved the National Company Law Appellate Tribunal (NCLAT) challenging the dismissal of their insolvency plea by NCLT.

SpiceJet has raised ₹3,000 crore through the sale of shares to qualified institutional buyers, which will provide a much-needed tailwind for the struggling airline.

Among others, the proceeds will be used for settling liabilities of creditors, including aircraft and engine lessors, engineering vendors and financiers.

Five allottees each have received more than five per cent of the shares offered in the QIP. They are Authum Investment and Infrastructure Ltd (9.33%), Discovery Global Opportunity (Mauritius) Ltd (8.33%), Troo Capital (6.67%), Societe Generale – ODI (6.04%) and Goldman Sachs (Singapore) Pte – ODI (5.33%), as per another regulatory filing.

The carrier’s statutory dues totalled ₹601.5 crore as of September 15 and net proceeds from the placement will also be utilised towards clearing the dues.