SpiceJet’s Dublin based lessor Aircastle has moved an insolvency petition with the NCLT over unpaid lease rentals for four B737-800s aircraft.
According to sources, this petition was moved on May 4 under section 9 of the Insolvency Bankruptcy Code (IBC). The petition has been moved over unpaid lease rentals from the airline for four B737-800s.
“The conversation with the airline did not go as planned. It hasn’t paid lease rentals, and both parties are unable to get on the same page, hence, the petition has been filed,” a source said. In 2020 also, Aircastle had asked for reclaiming its aircraft back over unpaid dues.
The section 9 of the IBC, 2016 is the application for initiation of corporate insolvency resolution process by operational creditor.
Sources have said that the matter will be heard by the NCLT on Monday.
In response, a spokesperson for SpiceJet told businessline, “Since they have gone to the courts, we would not like to comment on the specifics at this stage. Nonetheless, we are confident of resolving the matter without court proceedings and we are in discussions with their senior leadership team for the same. The comments provided here are without prejudice to our rights and in no way should be deemed as admission of any liabilities.” .
This comes even as the Ajay Singh-owned no-frills carrier converted its debt into equity. Carlyle Aviation now holds a 7.5 per cent stake in the airline after converting $100 million of outstanding dues into equity. Carlyle also acquired compulsorily convertible debentures in SpiceXpress, the airline’s cargo arm.