Indian tribunal orders fresh hearings in bankruptcy petitions against the airline after a last-minute settlement with one lessor forces the judgment to be rewritten, giving SpiceJet a temporary reprieve.
Bankruptcy petitions filed by aircraft lessors against SpiceJet will be heard afresh by a new bench of India’s National Company Law Tribunal (NCLT), after the airline reached a last-minute settlement with one of the lessors.
The order is a setback for aircraft leasing companies that have been fighting for years to recover dues from SpiceJet but offers the financially strained airline temporary relief as its existing management will remain in control while the petitions are reconsidered.
The NCLT had prepared a judgement covering eight bankruptcy petitions against SpiceJet. However, the withdrawal of one petition following the settlement meant the tribunal needed to rewrite its ruling.
With one member of the judicial panel due to retire on Wednesday, the tribunal said there was insufficient time to rewrite and deliver the judgement. The remaining petitions will therefore have to be heard afresh by a new bench, a judge said.
Following the order, SpiceJet shares pared losses and were trading 2.1 per cent lower at 10.95 rupees. SpiceJet described the order as a “positive step” towards resolving the disputes.
“We remain committed to working closely and constructively with our partners to find mutually acceptable solutions,” an airline spokesperson said.
More from BusinessThe total amount claimed by the lessors was not immediately clear. SpiceJet has been grappling with cash-flow pressures, including delayed salary payments to pilots, Reuters reported in June. The airline has also received financing under a government-backed credit programme aimed at stabilising its operations.
The airline’s market share stood at 1.9 per cent in June, sharply down from about 15 per cent at the end of 2019.
