The Indian court ruled on Wednesday that the bankruptcy petitions filed by aircraft leasing companies against SpiceJet will be re-examined by a new bench after the airline reached an urgent agreement with one of the lessors.
This decision was a setback for the aircraft leasing companies, which had been engaged in a long-running battle with India's fourth-largest airline to recover debts. However, it is a relief for SpiceJet itself, as its current management will retain control of the airline during the review of the petitions.
The National Company Law Tribunal prepared a ruling covering eight petitions against SpiceJet but stated that the withdrawal of one petition due to the concluded agreement necessitates reworking this order.
According to the judge, since one member of the judicial panel is set to retire on Wednesday, the tribunal did not have sufficient time to rewrite and issue the decision, meaning the remaining petitions will have to be reviewed by a new bench.
Following this ruling, SpiceJet shares lost 2.1 percent, trading at ₹10.95.
In a statement, the airline called the decision a 'positive step' toward resolving the issues. A company representative noted: 'We continue to strive to work closely and constructively with our partners to find mutually acceptable solutions.'
The exact amount demanded by the lessors was not immediately disclosed. As Reuters reported in June, SpiceJet's financial difficulties led to delays in paying pilots' salaries. The airline received funding under a government credit program to stabilize its operations.
By the end of June, the airline's market share stood at 1.9 percent, compared to approximately 15 percent it held at the end of 2019.