SpiceJet’s Smart Move: Resolving Genesis SPV Dispute

SpiceJet Strikes Deal to Settle Genesis SPV Dispute

SpiceJet hopes to resolve a 1.15 billion rupee (USD13.8 million) claim by GASL Ireland Leasing A 1 Limited, an aircraft leasing particular purpose vehicle controlled by Genesis Aircraft Services. Amit Sibal, representing the airline at the Delhi High Court on July 5, mentioned that a settlement proposal will be offered within the next two weeks.

The case of GASL Ireland Leasing A 1 Limited and SpiceJet Limited was brought before the court last week as part of GASL’s ongoing efforts to enforce judgments. This matter concerns a B737-800, previously registered as VT-SLI (MSN 29670), leased to SpiceJet in May 2017. The aircraft is no longer in SpiceJet’s fleet. GASL is now seeking to secure SpiceJet’s assets to comply with UK court orders. It has requested that the Indian court instruct SpiceJet to disclose a list of its assets, including movable and immovable property.

Sibal informed the court that SpiceJet recently raised INR5 billion (USD60 million) through an equity issue and anticipates an additional INR7 billion (USD83.9 million) soon. The airline plans to raise INR20 billion (USD239.6 million) for recapitalization and restore its operations. Sibal expressed concerns that any orders to attach assets would jeopardize the airline’s ability to raise additional funds. The Delhi High Court postponed the matter until July 19 to allow SpiceJet to present its settlement proposal.

On a separate note, engine lessor Shannon Engine Support Limited has initiated insolvency proceedings against SpiceJet in India’s specialist bankruptcy court, the National Company Law Tribunal. According to court records, Shannon filed its petition on May 31, with the next mention scheduled for August 22. Shannon Engine Support is the world’s largest CFM56 and LEAP engine lessor.