SpiceJet is facing new insolvency claims from three Irish aircraft leasing companies and a former pilot. The parties alleged the airline of defaulting on rent and employment payments, adding to the financial strain as it attempts to resume operations. Three Irish lessors, NGF Genesis Ltd, NGF Charlie Ltd, and NGF Alpha Ltd, have alleged that SpiceJet failed to make rental payments, with the total amount owed standing at $12.4 million.
The case was bought to the National Company Law Tribunal (NCLT) after the lessors sent a legal notice to SpiceJet in December, alleging that the airline had stolen aircraft parts, including engines, from five Boeing 737 freighter planes that were leased to them.
Furthermore, a former SpiceJet pilot, has also claimed the unpaid employment dues of Rs 1.70 crore, covering the period from March 2020 to August 2022.
Notably, by February, around 20 cases had been filed with the NCLT’s Delhi bench, mainly by aircraft leasing companies, vendors, and pilots. Moreover, five have of these cases has been settled and withdrawn, two are in settlement talks, seven are pending, and two have been dismissed.
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What Else For SpiceJet?
During the hearing at the Delhi bench of the insolvency court, SpiceJet sought time to respond as its settlement talks were underway. Likewise, NCLT adjourned hearing of the lessors’ cases until April.
In the case involving the pilot, the NCLT ordered SpiceJet to respond to the claims and ordered the pilot to explain why his claims should not be dismissed under Section 10A of the Insolvency and Bankruptcy Code. IBC’s Section 10A provides temporary relief to businesses affected by the pandemic years.
