 "Reached settlement with Celestial Aviation, formalities remain: SpiceJet")
SpiceJet, the low-cost airline, informed the National Company Law Tribunal (NCLT) on Monday that their disagreement with aircraft lessor Celestial Aviation is nearly resolved, with only formalities remaining.
Senior advocate Krishnendu Dutta, representing SpiceJet, informed the tribunal that substantial progress had been made, with partial payments already made, and requested an adjournment to finalise the settlement process. Consequently, the case has been adjourned to April 2024.
Acknowledging the receipt of payments, Celestial's counsel, Nitin Sarin, confirmed the airline's efforts despite missing some deadlines.
The dispute arose when Celestial Aviation initiated insolvency proceedings against SpiceJet in August for defaulting on payments amounting to $29.9 million for nine aircraft. Both parties indicated their intent to settle in October 2023 to the tribunal.
Earlier, the NCLT dismissed insolvency petitions filed against SpiceJet by aircraft lessors Wilmington Trust SP Services and Willis Lease Finance Corporation. Aircastle (Ireland) Ltd had filed two insolvency pleas against the cash-strapped airline. The NCLT had issued a notice for one plea but questioned the maintainability of the second.
In December 2023, SpiceJet informed the tribunal of partial payments made to Celestial Aviation, prompting an extension until January 18 for settlement discussions.
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On January 18, both parties confirmed ongoing settlement negotiations, leading SpiceJet's counsel to request a further adjournment. The matter was then scheduled to be heard on February 26, when the airline informed the tribunal that the matter had been settled.
This is a developing story.