The National Company Law Tribunal (NCLT) on Monday deferred its rulings on eight bankruptcy petitions filed against SpiceJet by aircraft lessors after the airline reached a last-minute settlement with one of the lessors.
The tribunal is now expected to pronounce its order on Wednesday, August 19, after agreeing to give the parties time to place the settlement agreement before it, Reuters reported.
The court criticised the airline and the lessor for informing it about the settlement only on the day the rulings were scheduled. The judges said substantial time had already been spent hearing arguments and preparing the judgments.
The tribunal also sought clarity on whether SpiceJet was negotiating similar settlements with the other lessors. Lawyers representing some of the remaining lessors urged the court to proceed with the rulings in their cases.
The proceedings involve eight insolvency petitions filed by aircraft lessors over unpaid dues. Admission of even one such petition could trigger a formal insolvency resolution process, potentially placing the airline under the control of an insolvency professional while creditors work on a restructuring.
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SpiceJet under financial pressure
The developments come as SpiceJet continues to face financial and operational challenges after years of losses, legal disputes and funding constraints.
The airline has reduced its flight operations, grounded aircraft and faced delays in salary payments as it attempts to shore up its finances. Its domestic market share stood at 1.9% in June, sharply below around 15% in 2019.
SpiceJet has received Rs 1.5 billion under a government-backed credit programme aimed at supporting its operations. However, disputes with aircraft lessors have continued.
In July, two entities owned by the aircraft-leasing arm of China's ICBC sought deregistration of four Boeing 737 MAX aircraft leased to SpiceJet. At least two other lessors have also issued payment default notices to the airline this year.
