Bankruptcy petition filed against debt-ridden SpiceJet, ELF owes $16 million including interest

SpiceJet: Engine Lease Finance (ELF), a company that provides aircraft engines, has filed a bankruptcy petition against debt-ridden airline SpiceJet for a liability of about Rs 100 crore. ELF has leased eight aircraft engines to SpiceJet. It has claimed that SpiceJet owes about $16 million including rent and interest.

May 30, 2024 - 12:44
Bankruptcy petition filed against debt-ridden SpiceJet, ELF owes $16 million including interest

A company that provides aircraft engines, Engine Lease Finance (ELF), has filed for bankruptcy against financially troubled SpiceJet, alleging a liability of roughly Rs 100 crore.

Eight aircraft engines are being leased by ELF to SpiceJet. SpiceJet is allegedly owed roughly $16 million, including interest and rent. This petition was the subject of a brief hearing on Wednesday by the Delhi bench of the National Company Law Tribunal (NCLT).

During this, SpiceJet's lawyer pleaded for time to present his side on the petition. On this, the bench of Mahendra Khandelwal and Sanjeev Ranjan directed SpiceJet to file its reply to the petition. ELF had entered into an agreement to lease engines to SpiceJet in the year 2017. SpiceJet has not been making timely payments since April 2021.

Muskan Kumawat Journalist & Content Writer