Airline Crisis: The bankruptcy process is going to be heard against another airline of the country. The National Company Law Tribunal (NCLT) is scheduled to hear next week the insolvency petition filed by a lender of the airline SpiceJet. The bankruptcy petition against SpiceJet will be heard in the NCLT on May 8.
Who filed the application against SpiceJet before NCLT?
Aircraft Lesser Aircastle (Ireland) Limited, a lender to low-cost airline SpiceJet, has filed an application before the NCLT to initiate the insolvency resolution process. This application was filed on 28 April. According to the information available on the website of NCLT, the principal bench of the tribunal will hear this application on May 8.
GoFirst has filed an application to initiate the insolvency resolution process on its own.
Prior to this, GoFirst, an airline owned by the Wadia Group, itself filed an application before the NCLT to initiate the insolvency resolution process. GoFirst has filed this application after being in a financial crisis, on which the NCLT has reserved its decision after hearing.
What did the SpiceJet spokesperson say?
On filing for insolvency, a SpiceJet spokesperson said the development would not have any impact on the airline’s operations. In a statement, the spokesman hoped that the issue would be resolved out of court. Along with this, he said that currently no aircraft of this lender is included in the airline’s fleet. The spokesperson said, “All the aircraft of this aircraft leasing firm have already been returned.”
Two more petitions are also pending
However, according to the information available on the website of NCLT, two other petitions related to initiation of insolvency process against SpiceJet are pending. The bankruptcy application was filed by Willis Lease Finance Corporation on April 12, while the application was filed by Akers Buildwell Pvt Ltd on February 4. There was no immediate response from SpiceJet regarding both these petitions.
