26.09.2023 - 00:50 UTC
India's Supreme Court has ordered SpiceJet (SG, Delhi International) to pay Credit Suisse USD1 million per month for the next six months before reverting to USD500,000 monthly payments to settle a longstanding MRO debt.
"The Supreme Court has acknowledged our compliance with its previous orders and concurred with our proposal to settle the USD3 million arrears over the forthcoming six months," a SpiceJet statement reads. "This represents a positive outcome for the company and our stakeholders, and we extend our gratitude to the Court for its understanding. We are dedicated to paying our dues in full and on time. "We are strongly committed to maintaining the highest standards of compliance and look forward to continuing our positive dialogue with all parties involved."
Early last week, SpiceJet paid Credit Suisse USD1.5 million after Supreme Court judges threatened to send its chairman and managing director Ajay Singh to jail for not complying with court orders.
The matter concerned a 10-year aircraft servicing and maintenance contract SpiceJet entered into with SR Technics in late 2011. SpiceJet initially provided...
20.09.2023 - 01:59 UTC
SpiceJet (SG, Delhi International) continues its push to have insolvency proceedings brought against it dismissed, most recently telling India's bankruptcy court, the National Company Law Tribunal (NCLT), that cases filed by Wilmington Trust SP Services (Dublin) and Celestial Aviation Services Ltd were not maintainable.
In a September 15 appearance before the NCLT, Sanjay Gupta, appearing for SpiceJet, argued that Wilmington was the trustee of the aircraft at the centre of the dispute, not the owner. He said the owner was Aircastle, noting that the relevant lease invoices were issued to Aircastle (Ireland) Ltd. This is not a fresh argument from SpiceJet's counsel. Previously, ch-aviation reported that during an August 18 hearing, counsel made the same argument, which Ajay Kumar, appearing for Wilmington, rebutted by saying India's Directorate General of Civil Aviation (DGCA) had issued a certificate of aircraft registration that named Wilmington as the lessor.
Last week, Gupta also told the tribunal that five creditors had teamed up to file the single Celestial insolvency petition, and that it should be dismissed...
15.09.2023 - 02:05 UTC
SpiceJet (SG, Delhi International) has abided by a court-imposed ruling to pay INR1 billion Indian rupees (USD12.1 million) to the carrier's former majority owner, Kalanithi Maran. The payment was made in two tranches earlier this week, finalising on September 12, two days after the September 10 deadline laid down by Delhi High Court.
The low-cost carrier and its current majority owner and promoter, Ajay Singh, was ordered in August to make the payment, which comprises less than one-third of the INR3.8 billion (USD45.8 million) owed to Maran and his associated corporate entity, KAL Airways. SpiceJet paid INR775 million (USD9.3 million) on September 11 and INR225 million (USD2.8 million) the following day.
During an August 24 hearing, SpiceJet was told to make the INR1 billion payment by September 10 or risk asset seizure. In court on September 11, one day after the deadline had passed, the court gave SpiceJet 24 hours to complete the process. SpiceJet said the payments were slightly late due to bank holidays in India on September 9 and 10.
The debt...
Editorial Comment: Updated after SpiceJet confirmed it had paid USD1.5 million to Credit Suisse - 16.09.2023 - 23:06 UTC
13.09.2023 - 09:33 UTC
At least one lessor has rejected a bid by SpiceJet (SG, Delhi International) to settle its debts by issuing shares in lieu. India's Economic Times reports that Aircastle has said no to a debt-for-equity swap offer from the beleaguered airline. This comes as a Delhi court threatened to jail SpiceJet's chairman earlier this week over the non-payment of debts.
The report states that SpiceJet has approached several lessors, including some who have commenced insolvency proceedings against the airline, with the offer. So far, only Carlyle Aviation Partners has agreed to swap its debt for a shareholding in the airline. SpiceJet's shareholders recently approved a proposal to allocate nine Aircastle-controlled special purpose leasing vehicles preferential shares worth INR2.31 billion Indian rupees (USD27.9 million) to settle outstanding debts.
"We are in continuous discussions with all lessors, including Aircastle, for settlement," a SpiceJet spokesperson told the newspaper. "We have successfully closed it with out largest lessor and partner (Aircastle), and are hopeful of doing so with others." The spokesperson added that some of the lessor's claims...
