SpiceJet Bankruptcy Petitions to Be Reheard in Fresh Setback for Lessors
An Indian tribunal ruled on Wednesday that bankruptcy petitions against SpiceJet will be heard afresh by a new bench. The National Company Law Tribunal (NCLT) had already prepared a judgment on eight petitions, but the airline reached a last-minute settlement with one lessor, forcing the petition’s withdrawal. Because the judgment needed to be rewritten and one panel judge was retiring that same day, the tribunal lacked sufficient time to deliver the ruling, necessitating a complete rehearing by a new panel.
This procedural reset marks a significant setback for aircraft leasing companies that have spent years attempting to recover unpaid debts. Conversely, it serves as a major temporary reprieve for SpiceJet, allowing its current management to retain control of the airline while the remaining petitions are reconsidered. Following the announcement, SpiceJet shares narrowed their losses to trade down 2.1% at 10.95 rupees, with the airline calling the decision a positive step toward finding mutually acceptable solutions with its partners.
The ruling arrives amid ongoing financial strain for India’s fourth-largest carrier. SpiceJet has faced severe cash struggles that previously forced it to delay pilot salaries, and it has relied on a government-backed credit program to stabilize its operations. Once holding a 15% market share at the end of 2019, the airline’s market share dropped to just 1.9% as of June.
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