SpiceJet Ltd has entered into an in-principle understanding with its five lessors managed by B&B Air Acquisition of Ireland with regard to five aircraft operated by it.

According to SpiceJet, the lessors have agreed to suspend court proceedings, including winding-up proceedings (at the Madras High Court), and deregistration process of aircraft.

This is subject to SpiceJet satisfying the terms of settlement and parties executing definitive agreements, said a communication issued by the airline to the BSE.

Winding up petition

Last week, the Madras High Court issued a notice to SpiceJet, returnable in three weeks, on a winding up petition filed by five lessors to whom the airline owed ₹80 crore.

Advocate L Maithili representing the lessors told BusinessLine that the petition will continue to be in the Court till the transactions are over, after which the Court will be informed to withdraw the case.

B&B Air also represented others lessors – Steddel Ltd, Torodell Ltd, Xavier Dell Ltd and Virgodell Ltd – while individually the companies have filed petitions for repayment of dues.

The petition said SpiceJet has been in continuous breach of various provisions of the lease since November 2013 and large amounts due to the B&B Air remain unpaid in the form of basic and fundamental rent and other dues payable under the leases.

With SpiceJet unable to pay the outstanding amount, the lease agreement was terminated on December 3, 2014.

Despite this, SpiceJet neither repaid nor responded to letters, the petition said.

B&B Air asked the Court to direct SpiceJet be wound up, appoint Official Liquidators to take charge of the assets of the airline and pay the costs.

On Wednesday, the SpiceJet stock gained 3.46 per cent on BSE to close at ₹22.45, even as the benchmark Sensex gained 1.08 to 28,260.14.

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