SpiceJet faces fresh bankruptcy case filed by software solutions startup Techjockey

New Delhi: Software solutions startup Techjockey Infotech Pvt. Ltd. has filed for insolvency proceedings against cash-strapped airline SpiceJet citing a default of around 100 million euros. ₹1.18 crores.

The National Company Law Tribunal (NCLT) has accepted the appeal and issued a notice to SpiceJet. The case is scheduled to be heard in November.

The bankruptcy petition filed under Section 9 of the Insolvency and Bankruptcy Code (IBC) seeks to initiate insolvency proceedings against the airline for default arising from a 2021 deal under which SpiceJet acquired its cloud services.

According to Techjockey’s lawyer, the company sent several invoices to SpiceJet and raised payment demands but SpiceJet did not respond to them, leading to the filing of bankruptcy proceedings.

This case adds another to the list Bankruptcy cases against SpiceJet For outstanding dues to various vendors and aircraft lessors. However, none of these petitions have resulted in insolvency proceedings against the airline so far. Some have been rejected by the NCLT, others have been withdrawn after compromises, while some are still awaiting final orders.

The parties that have filed various bankruptcy cases include Wilmington Trust SP Services (Dublin), Willis Lease Finance, Celestial Aviation, Aircastle and Alterna Aircraft. Three entities—AWAS 36698 Ireland, AWAS 36694 Ireland and AWAS 36695—Shannon Engine Support Limited and Engine Lease Finance BV and Raymach Technologies Pvt. have also filed.

While NCLT rejected the objections of Willis Lease Finance and Wilmington Trust SP, SpiceJet settled with Celestial Aviation, Alterna Aircraft and Raymach Technologies Pvt.; all of these companies withdrew their cases against the airline.

The petitions of Aircastle, AWAS 36698 Ireland, AWAS 36694 Ireland and AWAS 36695 and the petitions of Shannon Engine Support Limited and Engine Lease Finance BV are pending.

Wilmington Trust and Willis Lease Finance have approached the National Company Law Appellate Tribunal (NCLAT) to challenge the dismissal of their insolvency proceedings by the NCLAT.

Spicejet’s QIP plans

SpiceJet on Monday, ₹3,000 crore through qualified institutional placement (QIP) which opened on September 16 and closed on September 18. The airline reported an overwhelming response from qualified investors, with the offer being significantly oversubscribed, reflecting strong confidence in the company’s growth prospects.

SpiceJet claimed that the diverse pool of top institutional investors and investment funds has reaffirmed the market’s faith in SpiceJet’s ability to meet the challenges in the aviation sector and capitalise on the growing demand.

Leading global investors include Goldman Sachs (Singapore), Morgan Stanley Asia, BNP Paribas Financial Markets ODI, Nomura Singapore Limited ODI, Tata Mutual Fund, Discovery Global Opportunity Ltd, Société Générale ODI, Authum Investment and Infrastructure Limited, Bandhan Infrastructure Fund, White Oak, Carnelian Bharat Amrikaal Fund, 360 ONE Equal Opportunity Fund and The Jupiter Global Fund.

Also Read: SpiceJet’s road to recovery: A long and arduous climb to regain market share

According to the airline, in addition to ₹SpiceJet, which raised Rs 3,000 crore through its QIP, will also receive an additional amount ₹It has raised Rs 736 crore from its previous funding round, further strengthening the company’s financial stability and growth plans.

“The strong response from investors and institutions is a testament to their belief in SpiceJet’s potential to scale rapidly and become a strong player in India’s evolving aviation market. This fundraising marks a significant moment for SpiceJet as we aim to scale new heights in the aviation sector,” said Ajay Singh, chairman and managing director of the airline.

This fresh capital raised by SpiceJet will be crucial in helping the airline overcome its financial woes and reach an agreement with various creditors, especially the lessors involved in ongoing cases in the NCLT, Delhi High Court and the Supreme Court over outstanding dues. Recent court orders have forced the grounding of engines and aircraft leased against these outstanding dues, adding to the troubles for the airline.

The Supreme Court on Friday dismissed SpiceJet’s appeal against the Delhi high court’s order directing it to ground three engines leased from Team France 01 SAS and Sunbird France 02 SAS due to unpaid dues, forcing the airline to ground these engines.

According to media reports, SpiceJet Managing Director Ajay Singh claimed that the airline aims to increase its fleet to 100 aircraft by 2026. Singh stated that SpiceJet plans to quickly return to service 36 aircraft that were grounded due to lack of spare parts.

The airline is expected to have a fleet of 40 aircraft, equivalent to Akasa Air’s, by March 2025, with plans to add another 40 aircraft later.

SpiceJet’s stock price surged 10% on Monday to hit daily high ₹Following the QIP news, it is trading at 72.8 per share on the BSE.

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