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SpiceJet gets new NCLT hearing after last-minute lessor settlement
A last-minute settlement with one lessor forced India's NCLT to scrap a prepared judgment. The remaining seven petitions go before a new bench, keeping SpiceJet's existing management in control.
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An Indian court on Wednesday ordered bankruptcy petitions filed by aircraft lessors against SpiceJet to be heard afresh by a new judicial panel. The National Company Law Tribunal had prepared a single judgment covering eight petitions. The withdrawal of one after a last-minute settlement meant the ruling had to be rewritten, the tribunal said.
With one member of the bench retiring Wednesday, there was not enough time to rewrite and deliver the judgment. The remaining petitions will go before a new bench, a judge said.
The order is a setback for lessors who have spent years trying to recover debts from India's fourth-largest carrier. It gives SpiceJet breathing room because its existing management keeps control while the petitions are reconsidered.
SpiceJet shares pared their earlier losses after the order, trading down 2.1% at ₹10.95.