India's SpiceJet bankruptcy cases to be reheard in setback for lessors (updated)

Spicejet

19/08/2026 07:26

Adds detail on number of petitions, SpiceJet shares and statement, in paragraphs 1, 5-7
NEW DELHI, Aug 19 (Reuters) - An Indian court on Wednesday said bankruptcy petitions filed by aircraft lessors against SpiceJet SPJT.BO will be heard afresh by a new bench, after the airline reached a last-minute settlement with one lessor.
The order is a setback for aircraft leasing companies that have waged a years-long battle against India's fourth-largest airline to recover debts, but is a reprieve for SpiceJet as its existing management will remain in control of the airline while the petitions are reconsidered.
The National Company Law Tribunal had prepared a judgment covering eight petitions against SpiceJet, but said the withdrawal of one of the petitions following the settlement meant the ruling needed to be rewritten.
With one member of the judicial panel due to retire on Wednesday, the tribunal said there was not enough time to rewrite and deliver the judgment, meaning the remaining petitions would have to be heard afresh by a new bench, a judge said.
After the order, SpiceJet's shares pared losses to trade down 2.1% at 10.95 rupees.
In a statement, the airline called the order a "positive step" toward resolving matters.
"(We) remain committed to working closely and constructively with our partners to find mutually acceptable solutions," a spokesperson said.
The amount claimed by lessors was not immediately clear.
SpiceJet's cash struggles have seen it delay salary payments to pilots, Reuters reported in June. It has received financing under a government-backed credit programme to stabilise operations.
The airline's market share was 1.9% as of June from about 15% at the end of 2019.

 (Reporting by Abhijith Ganapavaram and Arpan Chaturvedi; Editing by Christopher Cushing and Sonali Paul)
 ((Email: Abhijith.G@thomsonreuters.com; Mobile: +91-9019785574;))