SpiceJet's Financial Turbulence: Insolvency Petitions Skyrocket

SpiceJet faces insolvency pleas in the NCLT from three Ireland-based aircraft lessors and a former pilot, claiming defaults totaling $12.68 million. Amid ongoing settlement talks, the tribunal scheduled future hearings for April 2025. SpiceJet has been under financial strain, defending multiple insolvency cases and attempting to settle with creditors.

SpiceJet, the budget airline, is encountering fresh challenges as three aircraft lessors from Ireland and a former pilot have filed insolvency petitions against the company in the National Company Law Tribunal (NCLT). They accuse SpiceJet of defaults amounting to USD 12.68 million.

The lessors, NGF Alpha, NGF Genesis, and NGF Charlie, have sought to initiate insolvency proceedings under Section 9 of the Insolvency and Bankruptcy Code (IBC). The petitions claim the budget carrier owed significant dues, and ongoing settlement negotiations have postponed the resolution.

The NCLT has scheduled the next hearings for April 2025 as SpiceJet navigates multiple insolvency cases, including claims by creditors Willis Lease and Aircastle Ireland. With no final rulings yet, SpiceJet is working towards settling its liabilities, following a Rs 3,000 crore share sale in September 2024 aimed at addressing debts.

(With inputs from agencies.)