Insolvency Troubles Mount for SpiceJet: Engine Lease Finance BV Files Fresh Plea

Engine Lease Finance BV, an engine lessor of troubled airline SpiceJet, has filed a fresh insolvency plea against the carrier, citing unpaid rental dues totaling more than $16.72 million. The dispute stems from an agreement dating back to 2017, where Engine Lease Finance leased engines to SpiceJet. However, the airline allegedly began defaulting on payments in April 2021, leading to the current legal battle.

The National Company Law Tribunal (NCLT) in Delhi heard the plea on Wednesday and has requested responses from both parties. The hearing was adjourned to Thursday to allow SpiceJet more time to respond to the petition they received that morning.

This is not the first time SpiceJet has faced insolvency troubles, as several other entities have filed similar pleas over pending dues. In April, three entities filed a plea against the airline for allegedly defaulting on rental dues of ₹77 crore. While some pleas have been rejected or settled, others are still pending, with Wilmington Trust and Willis Lease Finance challenging the NCLT’s dismissal of their insolvency pleas at the National Company Law Appellate Tribunal (NCLAT).

The ongoing legal battles highlight the financial challenges faced by SpiceJet and the aviation industry as a whole. Stay tuned for updates on this developing story.