Aircastle to withdraw insolvency plea in NCLT against SpiceJet after settlement

Aircastle, a lessor to SpiceJet, informed the National Company Law Tribunal (NCLT) that it has reached a settlement with the airline and wishes to withdraw its insolvency plea. The settlement involves SpiceJet paying $5 million to resolve a $23.39 million dispute. This agreement also includes arrangements for certain aircraft engines. Aircastle was one of the first lessors to file an insolvency plea against SpiceJet in early 2023, and the airline is currently facing nearly 10 similar pleas from various vendors and lessors. The NCLT indicated that the withdrawal would be allowed once a formal application is filed. This settlement marks the third dispute SpiceJet has resolved in less than a month, demonstrating the airline’s efforts to address its financial challenges and avoid further legal complications.