2024-01-30 07:34:59
Shares of SpiceJet rose another 5 per cent during the trading session on Tuesday following the National Company Law Tribunal (NCLT) has dismissed the insolvency petition filed once morest the Company by aircraft lessor Wilmington Trust SP Services. The company informed regarding the same through an exchange filing during the session.
Wilmington Trust is one of five lessors that had approached the NCLT with a plea to admit SpiceJet into insolvency over unpaid dues by the budget carrier. Willis Lease Finance, Celestial Aviation, Wilmington Trust, Aircastle, and Alterna Aircraft are the other lessors of the company.
A plea from Willis Lease Finance was also dismissed by the tribunal seeking the similar demand. However, plea from the remaining lessors are still pending in the NCLT. SpiceJet submitted various documents during the proceedings, such as lease agreements and invoices, to show that Wilmington was not an actual operational creditor but merely acting as a trustee.
Following the announcement, shares of SpiceJet rose regarding 4.7 per cent on Tuesday to Rs 67.30, with a total market capitalization of regarding 4,500 crore. The scrip had settled at Rs 64.29 in the previous trading session on Monday. The stock has almost tripled from its 52-week low at Rs 22.65 hit in May 2023.
SpiceJet is facing legal disputes with lenders and lessors over pending dues. The Delhi high court ordered the domestic aviation player to pay $4 million to two engine lessors on Monday. The company completed the first tranche of capital infusion aggregating to Rs 744 crore to 56 subscribers/investors in the previous trading session.
The company board SpiceJet considered and approved allotment of first tranche of 5,55,00,000 equity shares and 9,33,00,000 warrants, having option to apply for and be allotted equivalent number of equity shares of the face value of Rs 10 each at an issue price of Rs 50 each on preferential basis to persons under non-promoter category, said the exchange filing on Friday.
SpiceJet is an Indian budget airline, which operates a fleet of Boeing 737s, Q‐400s & freighters and is a leading national regional player operating multiple daily flights under UDAN or the regional connectivity scheme. The majority of the airline’s fleet offers SpiceMax, an economy class seating offering.
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