The National Company Law Tribunal (NCLT) on Monday served notice to SpiceJet as an operational creditor has filed a petition against the airline company. Spicejet has been asked by the NCLT bench of Mahendra Khandelwal and Sanjeev Tanjan to respond to the application pertaining to the OH and list the matter for the next hearing on November 14.
For insolvency petitions, SpiceJet was previously served with several petitions by creditors like Willis Lease, Aircastle Ireland Ltd, Wilmington, and Celestial Aviation at NCLT and also the appellate tribunal NCLAT.
This case adds to a list of insolvency cases against SpiceJet for unpaid dues to various vendors and aircraft lessors. (REUTERS)
The last filed petition is by Techjockey Infotech Pvt Ltd filed and admitted under the section 9 of the insolvency code by the operational creditor through Karanjawala & Co.
Techjockey Infotech said that SpiceJet had not paid them close to Rs 1.2 crore for software services they had supplied to the airline and asked for a CIRP to be started against SpiceJet.
It argued that SpiceJet has recognized its debt even though it has not been paid yet.
In the first week of June, NCLT had issued notices to SpiceJet over the petition filed by Engine Lease Finance (ELF). Ireland-based ELF is the largest global independent engine financing and leasing organization, and it alleged a payment default of more than USD 12 million (approximately Rs 100 crore).
In its ruling, the NCLT dismissed the mitigation notices of Willis Lease Finance and Wilmington Trust. The case was settled between Spicejet and Celestial Aviation.
As for the three petitions, only the ones filed by Aircastle and Alterna Aircraft are still awaiting consideration by the insolvency tribunal.
Wilmington Trust and Willis Lease Finance have both petitioned the National Company Law Appellate Tribunal (NCLAT) to contest their dismissal from the National Company Law Tribunal (NCLT) insolvency plea.
Qualified institutional buyers have invested in SpiceJet for Rs 3,000 crore which will help the closely working airline.
Among others, the proceeds will be utilized for paying the creditors’ amounts owed to such groups as aircraft and engine lessors, engineering vendors and financiers.
The five allottees have each been issued with over five per cent of the number of shares proffered in the QIP. These are, Authum Investment and Infrastructure Ltd 9.33 per cent, Discovery Global Opportunity (Mauritius) Ltd 8.33 per cent, Troo Capital 6.67 per cent, Societe Generale Foreign Limited 6.04 per cent and Goldman Sachs (Singapore) Private Limited Foreign – Industrial and Provident Company 5.33 per cent stated in another filing
As on September 15, the carrier’s statutory liabilities stood at Rs 601.5 crore and the net proceeds from the placement will also be used to settle the Duess.
Several insolvency cases are filed by Wilmington Trust SP Services (Dublin), Willis Lease Finance, Celestial Aviation, Aircastle, and Alterna Aircraft. Other litigants include AWAS 36698 Ireland, AWAS 36694 Ireland, and AWAS 36695; Shannon Engine Support Limited; Engine Lease Finance B.V.; and Raymach Technologies Pvt.
The NCLT condemned the pleas of Willis Lease Finance and Wilmington Trust SP, while SpiceJet resolved with Celestial Aviation, Alterna Aircraft, and Raymach Technologies Pvt.Ltd that have withdrawn their instances against the airline.
The applications of Aircastle, AWAS 36698 Ireland, AWAS 36694 Ireland, and AWAS 36695 Ireland are still outstanding, as are those of Shannon Engine Support Limited and Engine Lease Finance B.V.
Both Wilmington Trust and Willis Lease Finance have approached the National Company Law Appellate Tribunal (NCLAT) to appeal against the NCLT that had rejected their applications to conduct insolvency proceedings.
Spicejet’s QIP plans
Gurgaon-based SpiceJet on Monday announced that it has successfully raised ₹3,000 crore through qualified institutional placement (QIP), which was launched on September 16 and ended on September 18. The airline received almost equal response that is many qualified investors showed interest in the offering and its value was much more than the nominal value thus exhibiting high confidence in the future growth potential of the airline.
SpiceJet stated on this argument that with a diverse grid of leading institutional investors and mutual funds, the market has once again endorsed SpiceJet’s capabilities of making strategic directions on future uncertainties in the industry amidst increasing trends in the aviation business.
The other major global investors are Goldman Sachs Singapore, Morgan Stanley Asia, BNP Paribas Financial Markets ODI, Nomura Singapore Limited ODI, Tata Mutual Fund, Discovery Global Opportunity Ltd, Société Générale ODI, Authum Investment and Infrastructure Limited, Bandhan Infrastructure Fund, White Oak, Carnelian Bharat Amrikaal Fund, 360 ONE Equal Opportunity Fund & The Jupiter Global Fund.
References:
- https://www.livemint.com/companies/spicejet-insolvency-case-software-solutions-startup-techjockey-qip-fundraise-nclt-11727070153051.html
- https://economictimes.indiatimes.com/industry/transportation/airlines-/-aviation/spicejet-faces-another-insolvency-plea-from-operational-creditor-nclt-issues-notice/articleshow/113595476.cms?from=mdr
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