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The Madras High Court has issued a notice to SpiceJet Ltd, returnable in three weeks, on a winding up petition filed by five lessors to whom the airline owes ₹80 crore.
“Apart from the court notice, we have got permission for issuing private notice to SpiceJet to inform them to be present in the court in three weeks with a reply,” said advocate L Maithili, representing the lessors.
Lessor B&B Air Acquisition, an Irish company, also represents others lessors — Steddel Ltd, Torodell Ltd, Xavier Dell Ltd and Virgodell Ltd — while individually the companies have filed petitions for repayment of dues.
SpiceJet has been in continuous breach of various provisions of the lease since November 2013 and large amounts due to the B&B Air remain unpaid in the form of basic and fundamental rent and other dues payable under the leases, said the petition filed by B&B Air.
With SpiceJet unable to pay the outstanding amount, the lease agreement was terminated on December 3, 2014. Despite this, SpiceJet failed to repay nor did it respond to letters, the petition said.
SpiceJet is also liable to pay interest at 6.50 per cent per annum. With the airline unable to pay its debts, it is liable to be wound up under the provisions of the Companies Act. The airline was given sufficient time but failed to meet its financial commitment, the petition said.
B&B Air has asked the Court to direct SpiceJet be wound up, for an appointment of the Official Liquidators to take charge of the assets of the airline and pay the costs.
On Wednesday, SpiceJet in a statement said that B&B Air leased five aircraft with each one leased through a separate special purpose vehicle.
“We reiterate that discussions have been ongoing with the lessors for an amicable settlement. SpiceJet fully expects the matter will be resolved shortly and positively with the lessors, and there will be no grounding of aircraft or disruption of operations.”
On Monday, the airline said that it entered into settlement agreement with its lessor (Wilmington Trust SP Services (Dublin) Ltd with regard to aircraft operated by the company. The lessor has agreed to withdrawal of court proceedings and deregistration process of aircraft subject to SpiceJet satisfying the terms of settlement.
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