NCLT Grants SpiceJet One-Week Deadline To Respond To Aircastle's Insolvency Plea, Hearing Scheduled For May 25

The National Company Law Tribunal (NCLT) has granted SpiceJet a one-week deadline to submit its response to a plea filed by the airline's lessor, Aircastle, regarding unpaid dues.

The NCLT said that it would hear the aircraft lessor Aircastle's insolvency claim against SpiceJet on May 25.

SpiceJet owes the creditor money, as stated in the NCLT filing. Additionally, the creditor asked for the beginning of insolvency procedures in accordance with Section 9 of the Insolvency and Bankruptcy Code (IBC).

The airline was given instructions by the tribunal to address the lessor's bankruptcy claim and, if practical, investigate settlement possibilities.

SpiceJet received the notice on May 8 from the NCLT's Principal bench, which consists of two members and is chaired by President Ramalingam Sudhakar. He also gave SpiceJet the go-ahead to schedule the case for the hearing on May 17 after that.

On May 11, SpiceJet announced that it will restart its grounded fleet with the $50 million it had received from the government's Emergency Credit Line Guarantee Scheme (ECLGS) and internal cash accruals, in an effort to allay worries about its financial stability.

SpiceJet has claimed that despite the current instability in the Indian aviation market, it has no intention of declaring bankruptcy and is instead concentrating on its operations. After learning that two more of the airline's Boeing 737-8 aircraft had been deregistered, GY Aviation Lease contacted the DGCA on May 12.