SpiceJet has informed an Indian court that it has settled disputes with some of its lessors. The development comes as the airline continues efforts to deal with unpaid dues and restore aircraft to its fleet.
The airline has reached a settlement with aircraft lessor Aviator ML over a payment dispute involving around Rs 60 crore. However, the settlement did not bring an immediate end to the airline’s legal troubles, as the National Company Law Tribunal (NCLT) deferred its judgment in eight insolvency petitions against SpiceJet, reported CNBC.
The airline informed the NCLT on Monday that it had reached an agreement with Aviator ML overnight and had already made the first payment under the settlement.
The tribunal was scheduled to pronounce its order in the Aviator ML insolvency case on Monday. However, after the settlement was brought before it, the NCLT deferred its judgment to August 19.
The Aviator ML case is linked to claims made by other lessors. As a result, the tribunal also deferred its judgment in the other insolvency petitions against SpiceJet.
The settlement with Aviator ML was opposed by other lessors involved in the cases.
They argued that SpiceJet had reached an agreement with one creditor in an attempt to stop the other insolvency petitions from moving ahead. The lessors described the move as a “malafide” plea and referred to it as SpiceJet’s “buy one and get eight free” plan.
The combined dues claimed by lessors across the eight insolvency petitions are more than Rs 500 crore, according to submissions made before the tribunal.
Meanwhile, NCLT also criticised SpiceJet for informing it about the settlement when the court was due to pronounce its final orders.
The tribunal noted that the airline had already been given several opportunities to resolve the disputes. It also pointed out that the case had been pending for around two years.
With the Aviator ML matter connected to claims raised by other lessors, the NCLT decided to defer the orders in all the related cases.
For now, SpiceJet’s settlement with Aviator ML has resolved one payment dispute, but the airline continues to face claims from other lessors.