SpiceJet (SG, Delhi International) has agreed to pay engine lessors Team France and Sunbird France USD1.58 million by May 22, after ignoring a March 2024 court order to make a monthly lease payment within four weeks.
The agreement was noted in a May 3 court order signed by Judge Prathiba Singh of the Delhi High Court after he said he was inclined to give the LCC “one last chance” to pay up during a hearing earlier that week. The alternative was to issue grounding orders.
Sunbird France 02 SAS and Team France 01 SAS, two engine leasing special purpose vehicles controlled by ST Engineering, maintain SpiceJet has been in arrears for several years and told the court last week that the airline owed USD10.84 in overdue lease payments for three engines. In previous court hearings, the lessors had sought payment orders and injunctions preventing the carrier from using the engines.
On March 28, the court ordered the airline to pay that month’s lease costs within 28 days. However, later submissions by the lessor’s counsel said this was not done. SpiceJet has a history of ignoring court orders. Back in court on May 1, the judge threatened to issue engine grounding orders (two are in service, one is on the ground) but gave the airline one last chance to come to terms with the lessors. By May 3, another payment agreement had been reached.
In addition to this matter, Delhi High Court registry records show several cases underway against SpiceJet, including matters initiated by former backer Kalanithi Maran and his entity KAL Airways Private Limited; Delhi’s tax authorities; Genesis Aircraft Services SPV GASL Ireland Leasing A 1 Limited; and Cross Ocean Partners SPV VS MSN 36118 Designated Activity Company. Both cases filed by the SPVs are attempts by them to enforce UK High Court monetary awards following lease breaches by SpiceJet.
In addition, Aircastle, Celestial Aviation, Raymach Technologies, and three DAE Capital SPVs are attempting to have SpiceJet declared insolvent at India’s National Company Law Tribunal.
Between January 1 and February 29, SpiceJet raised USD127.9 million, part of a USD271.5 million capital raising that is intended to strengthen the financially challenged carrier’s balance sheet. Since then, SpiceJet has reached some out-of-court settlements with creditors.
The Sunbird France and Team France matter returns to court on May 27.
