SpiceJet issues shares to clear dues worth Rs. 231 crore
In an effort to settle outstanding dues valued at Rs. 231 crore, SpiceJet has announced plans to offer 48.1 million equity shares to nine of its aircraft lessors. This decision comes after the National Company Law Tribunal (NCLT) directed the airline to pursue this course of action. The allotment of shares is expected to help resolve pending insolvency cases filed by several lessors, including Celestial Aviation, Willis Lease Finance, Aircastle, and Wilmington.
NCLT defers Celestial Aviation's insolvency plea
The NCLT has postponed the hearing of a plea filed by Celestial Aviation, one of SpiceJet's lessors, to initiate insolvency proceedings against the airline to September 15. Celestial is the fourth lessor to head to the tribunal to recover its dues from SpiceJet. Other lessors with pending cases against the airline include Willis Lease Finance, Wilmington, and Aircastle.
These lessors will receive SpiceJet shares
SpiceJet argued Willis Lease Finance and Wilmington were not direct lessors and therefore cannot start insolvency proceedings. The lessors who will bag shares are SASOF III (A6) Aviation Ireland DAC, SASOF III (A13) Aviation Ireland DAC, SASOF III (E) Aviation Ireland DAC, and SASOF III (C) Aviation Ireland DAC. SASOF III (A19) Aviation Ireland DAC, SASOF II (J) Aviation Ireland DAC, Fly Aircraft Holdings One, Citrine Aircraft Leasing, and Fly Aircraft Holdings Seven will also get the shares.
Aircastle, Willis, Wilmington are excluded from share allotment
Aircastle, Willis Lease Finance, and Wilmington are not among the group of lessors who will bag SpiceJet shares. Aircastle's plea has already been accepted by the tribunal. In March, Wilmington and Aircastle deregistered aircraft from the Directorate General of Civil Aviation, via the de-registration and export request authorizations route. Willis Lease Finance argued that they provide services to lessors and should be treated as lessors, while Wilmington claimed they were Aircastle trustees and should be permitted to initiate insolvency proceedings.