SpiceJet is facing renewed financial trouble as three Ireland-based aircraft lessors and a former pilot have filed insolvency petitions against the budget carrier in the National Company Law Tribunal (NCLT), citing unpaid dues.
Lessors NGF Alpha, NGF Genesis, and NGF Charlie have moved NCLT under Section 9 of the Insolvency and Bankruptcy Code (IBC), seeking to initiate insolvency proceedings over outstanding payments totaling $12.68 million (about ₹110 crore). The lessors, who had leased five Boeing 737s to SpiceJet, have also accused the airline of removing aircraft parts, including engines, and using them in other planes.
During the NCLT proceedings earlier this week, SpiceJet requested time to resolve the dispute, stating that settlement discussions were underway. "Counsel on behalf of the Operational Creditor (SpiceJet) is present and sought time to seek instructions on the future course of action to be taken in the matter," the tribunal noted in its order. The next hearing for these petitions is scheduled for April 7, 2025.
In a separate case, the NCLT is examining whether the insolvency plea filed by a former pilot is barred under Section 10A of the IBC. The tribunal stated, "Counsel on behalf of the Operational Creditor is present and sought time to examine the issue specifically in respect of applicability of Section 10A in respect of certain claim amount and also to the limitation issue." The matter is set for a hearing on April 15, 2025.
Section 10A, introduced as a temporary relief measure during the pandemic, prevents financial and operational creditors from initiating insolvency proceedings for defaults occurring between March 25, 2020, and March 24, 2021.
SpiceJet is already battling multiple cases from lessors, vendors, and creditors in NCLT and the National Company Law Appellate Tribunal (NCLAT). Creditors such as Willis Lease, Aircastle Ireland Ltd, Wilmington, and Celestial Aviation have also initiated insolvency proceedings against the airline.
In September 2024, SpiceJet raised ₹3,000 crore through a qualified institutional placement of shares, aiming to clear dues owed to lessors, engineering vendors, and financiers. However, with fresh petitions piling up, the airline’s financial troubles remain far from over.
(With inputs from PTI)