Aviation News

Aircraft lessor rejects SpiceJet’s offer to issue shares against dues, ET Infra


Aircraft lessor Aircastle (Ireland) Ltd has rejected SpiceJet’s offer to allocate shares in lieu of its dues, has learnt, even as the cash-strapped budget airline maintained it expects to reach settlements with lessors including Aircastle.

SpiceJet had reached out to multiple lessors – some of which have approached the National Company Law Tribunal (NCLT) to initiate insolvency proceedings against the airline – offering equity against the dues it owes them.

So far, only Carlyle Aviation Partners, which had the highest exposure to the airline, has agreed to acquire a 5.91% stake in the low-cost airline.

“We are in continuous discussions with all lessors, including Aircastle, for settlement,” a SpiceJet spokesperson said.

“We have successfully closed it with our largest lessor and partner and are hopeful of doing this with others too,” the person added.

“Even the NCLT has advised the settlement route, and whatever is agreed mutually between the parties will be done.”

He further said the lessors’ claims are disputed and highly exaggerated.

Aircastle did not respond to ET’s queries until press time Friday.

Aircastle is among the four lessors that had sought to initiate insolvency proceedings against the airline.

While a notice was issued in one of the petitions filed by Aircastle, SpiceJet has questioned the maintainability of both petitions filed by the lessor before the tribunal.

SpiceJet also faces petitions from aircraft lessor Wilmington Trust SP Services (Dublin) Ltd and engine lessor Willis Lease Finance Corporation.

Last month, another lessor, Celestial Aviation Services approached the tribunal to initiate insolvency proceedings against the budget airline for default of $29.9 million for nine aircraft.

SpiceJet has been embroiled in legal tussles across various fora.

Earlier this week, the Delhi High Court deferred a bail plea hearing by SpiceJet chairman Ajay Singh to September 21 in view of the settlement talks between the parties.

  • Published On Sep 9, 2023 at 08:12 AM IST

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