Budget airline SpiceJet and lessor Celestial Aviation working towards settlement

Celestial Aviation Services Ltd is claiming a default of $29.9 million for nine aircraft.
A SpiceJet plane prepares to take-off from Chennai airport for domestic travel. (File Photo | PTI)
A SpiceJet plane prepares to take-off from Chennai airport for domestic travel. (File Photo | PTI)

NEW DELHI:  The NCLT on Tuesday deferred a case hearing against SpiceJet after the budget carrier and aircraft lessor Celestial Aviation informed that they are working towards settlement, which is in the advanced stage. 

During the proceedings, counsel appearing in the matter informed about the development and requested the National Company Law Tribunal (NCLT) to adjourn the matter, which was accepted. 

The development came during the hearing of a plea filed by Celestial Aviation Services, an operational creditor, to initiate insolvency proceedings against the airline.  

A two-member NCLT bench directed to list the matter on November 7 for the next hearing.

As per some reports, Celestial Aviation Services Ltd is claiming a default of $29.9 million for nine aircraft. It is the fifth lessor, which had moved against SpiceJet. 

Some other lessors such as Willis Lease Finance, Aircastle and Wilmington have also moved pleas to initiate insolvency proceedings against SpiceJet before the NCLT. 

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