NCLT lets SpiceJet lessor withdraw insolvency plea after settlement

NCLT allowed Aviator ML 29641 to withdraw its insolvency petition against SpiceJet following a settlement, while imposing ₹15 lakh in joint costs. SpiceJet has made an initial $500,000 payment; seven other creditor petitions will be reheard by a regular Bench.

— Source published Wed, 19 Aug, 2026, 19:00 IST · First seen Wed, 19 Aug, 2026, 19:08 IST · Source Business Standard · Companies

What happened

NCLT allowed Aviator ML to withdraw its insolvency plea against SpiceJet after a settlement, imposing ₹15 lakh in joint costs. SpiceJet paid an initial

Key facts

  • ₹15 lakh total costs
  • ₹7.5 lakh payable by each party
  • ₹58.64 crore alleged default
  • $500,000 initial settlement payment
  • seven remaining insolvency petitions
  • 2024

Why this matters

Potential partners should view the settlement as a limited de-risking event and diligence SpiceJet’s outstanding creditor exposure, liquidity runway, and restructuring needs.

What to watch

  • NCLT hearing dates, admission decisions, or withdrawal announcements for the seven remaining creditor petitions.
  • Evidence that the $500,000 initial payment is followed by timely settlement installments.
  • New aircraft repossession, deregistration, maintenance-payment, or lessor-default notices.
  • Fresh capital raises, promoter funding, asset sales, or refinancing announcements.
  • Changes in fleet deployment, cancellations, load factors, and cash-flow indicators.
  • Prioritize settlements or standstill agreements with the seven remaining petitioning creditors before their rehearing.
  • Secure committed liquidity through equity, debt, asset monetization, or promoter support to demonstrate capacity for scheduled payments.
  • Communicate a creditor-resolution timetable and fleet-operating plan to limit lessor, vendor, and booking-channel confidence deterioration.
  • Ring-fence aircraft lease payments and critical maintenance/vendor obligations to avoid further operational disruptions.