Embattled SpiceJet settles $23.39 mn dispute amid fresh insolvency case

New Delhi, Oct 15
Embattled airline SpiceJet on Tuesday said it has settled a $23.39 million dispute with Aircastle (Ireland) Designated Activity Company and Wilmington Trust SP Services (Dublin) Ltd for an aggregate sum of $5 million, as it faces a new insolvency case amid some still remain unresolved.

The fresh settlement has been reached along with an agreement in relation to the treatment of certain aircraft engines. The aviation firm said in a statement that as part of the settlement, “all ongoing litigations and disputes between the parties will be withdrawn at the appropriate forums”.

Last week, the low-cost carrier resolved a $131.85 million dispute with lessors Horizon Aviation 1 Ltd., Horizon II Aviation 3 Ltd, and Horizon III Aviation 2 Ltd. (under the management of Babcock & Brown Aircraft Management) for $22.5 million.

Last month, the airline had settled a dispute with Engine Lease Finance Corporation (ELFC), which initially claimed $16.7 million, for an undisclosed amount.

“We are pleased to have successfully resolved this long-standing dispute with Aircastle and Wilmington Trust. This settlement underscores our commitment to amicably resolving matters in the best interest of the company and all stakeholders,” said Ajay Singh, Chairman and Managing Director, SpiceJet.

Meanwhile, aircraft lessor Aviator ML 29641 Ltd has filed a new insolvency case in the National Company Law Tribunal (NCLT) over unpaid rental dues totalling around Rs 58 crore.

The case revolves around a lease agreement for a Boeing 737 aircraft signed on June 16, 2017, according to reports. The NCLT has allowed SpiceJet time to file its response, scheduling the next hearing for November 11.

The latest case adds to a series of insolvency petitions against SpiceJet, primarily related to unpaid dues to various vendors and lessors. The airline’s financial difficulties have led to court orders mandating the grounding of leased engines and aircraft due to unpaid dues.