A new bankruptcy petition over debts related to leasing aircraft engines has been submitted to the National Company Law Tribunal (NCLT) against SpiceJet, a domestic low-cost carrier.
A credible source reported that Engine Lease Finance BV has petitioned the NCLT to declare SpiceJet insolvent due to $12 million in unpaid arrears for the aircraft engines it had leased.
The engine lessor is the most recent of several parties to file a lawsuit against the airline, alleging payment failure and requesting engine seizure. SpiceJet has requested further time, claiming that the lessor's demand notice did not follow the IBC's necessary structure, given that it only got the documents on Wednesday morning. The report also said that the lessor used email correspondence between the two businesses as evidence of default.
In the meantime, SpiceJet's shares closed Wednesday at Rs 57.19, down 0.23 percent. The airline's market capitalization was Rs 4,480.29 crore.
This development follows a recent battle in a long-running share transfer issue between the airline and Kalanithi Maran. Out of the Rs 730 crore that SpiceJet had previously paid to former promoter Kalanithi Maran and his company KAL Airways, the airline has requested a refund of Rs 450 crore. On May 17, the Delhi High Court overturned a previous ruling by a single-judge bench, allowing SpiceJet to pursue the substantial refund on the basis of legal advice.
However, KAL Airways and Kalanithi Maran have said that they would want more than Rs 1,323 crore in damages from the airline and its CEO, Ajay Singh, since they think the Delhi High Court ruling is seriously faulty.
In response to KAL and Maran, SpiceJet stated that the allegations made were a "regurgitation of previously rejected claims" by the Delhi High Court and Arbitral Tribunal, and that they were not "legally untenable."
