Spicejet, lessor reach interim settlement, next hearing in February

SpiceJet is supposed to pay over $2 million to the engine lessor by January according to settlement terms

SpiceJet and Engine Lease Finance BV informed the Delhi High Court on Monday that they have reached an interim settlement, putting a temporary hold on legal proceedings.  
 

During the court session, legal representatives from both parties confirmed the agreed settlement terms and requested an adjournment. The court approved the request and rescheduled the matter for 8 February 2024.

The court had previously given SpiceJet until 16 October to reach a settlement with Engine Lease Finance BV, warning that failure to do so would result in an order to halt the use of the leased engines. Although the airline has returned eight of the nine leased engines, it continues to use one. The lessor had sought a court directive to stop SpiceJet from using this remaining engine and to have it returned.

 

This development comes amid growing legal pressures on SpiceJet; four other lessors—Aircastle Ireland Ltd, Willis Lease Corporation, Wilmington, and Celestial—have filed cases against the airline in 2023. These companies have approached the National Company Law Tribunal, seeking to declare the airline insolvent in order to recover their dues.