Indian budget airline SpiceJet and Celestial Aviation, a subsidiary of AerCap, one of the world’s largest aircraft lessors, have amicably settled their $29.9 million ( ₹250 crore) dispute, avoiding a prolonged legal battle.
The settlement was reached through mutual negotiations and approved by the National Company Law Tribunal (NCLT) last week, the airline said in an official statement on February 29. The formal withdrawal of the case is scheduled for March 1, 2024.
Ajay Singh, Chairman and Managing Director of SpiceJet, said, “I am pleased to announce that SpiceJet and Celestial Aviation have successfully resolved our $29.9 million dispute through mutual agreement. This settlement marks a significant step forward for both parties and underscores our commitment to finding amicable solutions to complex challenges. With this resolution, we can now focus on revamping our fleet and driving our business forward. I am grateful for the support of our stakeholders, including our investors, as we navigate through this process.”
SpiceJet recently secured investments totalling ₹1,060 crore through a preferential issue, with notable investors including Aries Opportunities Fund and Elara India Opportunities Fund. Part of these funds will be allocated towards settling past liabilities, the company stated.
In August last year, Celestial Aviation initiated insolvency proceedings against SpiceJet, citing a failure to pay $29.9 million for leasing nine aircraft.
Celestial Aviation is among five leasing companies that have petitioned the NCLT for the recovery of outstanding payments from SpiceJet. The list includes Willis Lease Finance Corp, Wilmington, Aircastle, and Alterna Aircraft BV Ltd. However, the tribunal has rejected the insolvency applications from Wilmington Trust SP Services (Dublin) in January and Willis Lease Finance in December last year.
Alterna Aircraft, an Ireland-based lessor, recently filed an insolvency claim against SpiceJet at the NCLT, demanding the repayment of $11.1 million and £265,000 as mandated by British courts, as reported by Mint earlier this week.
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Published: 28 Feb 2024, 02:00 PM IST