Logistics firm files insolvency plea against SpiceJet amid ongoing creditor settlements

New Delhi: The Indian arm of South Korea-based Eusu Logistics has filed an insolvency petition in the National Company Law Tribunal (NCLT) against budget airline SpiceJet.

Eusu Logistics India Pvt. Ltd filed a plea for unpaid freight services of ₹1.94 crore. The tribunal did not issue a notice due to the lawyer representing Eusu Logistics's absence and adjourned the hearing to 26 November.

On Thursday, aircraft lessor Falgu Aviation Leasing Ltd filed a plea against SpiceJet for allegedly defaulting on $8.1 million ( ₹68 crore). The NCLT has issued a notice to SpiceJet in this case.

The list of insolvency actions against SpiceJet for unpaid dues to various vendors and aircraft lessors has been growing by the day. To date, none of these cases have resulted in insolvency proceedings against the airline.

Creditors that have previously filed cases against the arline are Wilmington Trust SP Services (Dublin), Willis Lease Finance, Celestial Aviation, Aircastle, and Alterna Aircraft, along with AWAS 36698 Ireland, AWAS 36694 Ireland, AWAS 36695, Shannon Engine Support Limited, Aviator ML 29641 Ltd., Engine Lease Finance B.V., Raymach Technologies Pvt. Ltd., and software solutions provider Techjockey Infotech Pvt. Ltd.

Settling dues

During Friday’s proceedings, SpiceJet informed the NCLT that it had settled a $4.5 million dispute with Shannon Engine Support Ltd for $2 million.

This recent settlement follows three other major financial agreements by SpiceJet in recent weeks:

• On 15 October, the airline settled a $23.39 million dispute with Aircastle (Ireland) Designated Activity Company and Wilmington Trust SP Services (Dublin) Ltd for $5 million. 
• On 9 October, SpiceJet also resolved a $131.85 million dispute with lessors Horizon Aviation 1 Ltd., Horizon II Aviation 3 Ltd., and Horizon III Aviation 2 Ltd., managed by Babcock & Brown Aircraft Management, for $22.5 million. 
• On 24 September, SpiceJet settled a claim with Engine Lease Finance Corp. for a reduced amount, down from an initial $16.7 million.

SpiceJet is expected to receive ₹736 crore from a previous funding round, which is likely to support its financial stability and aid in meeting creditor obligations, particularly with aircraft lessors involved in various legal disputes in the NCLT, Delhi High Court, and Supreme Court. Recent court orders have mandated grounding leased engines and aircraft amid unpaid dues, further challenging the airline.

Also Read: SpiceJet’s path to recovery: A tough, long climb to reclaim market share

CMD, Ajay Singh, has indicated plans to expand the fleet to 100 aircraft by 2026. The airline aims to return its 36 grounded aircraft to operation by March 2025, expecting to reach a fleet size of 40 aircraft, comparable to Akasa Air, and subsequently add 40 more.