Economy
NCLT Defers SpiceJet Insolvency Order Following Last-Minute Settlement
barandbench1h
THE BRIEF
1
The NCLT deferred insolvency orders against SpiceJet until August 19 and 20 after the airline reached a last-minute settlement with creditor Aviator ML 29641 Limited regarding a ₹58.64 crore default.
2
SpiceJet has already made an initial payment of $500,000 under the new settlement agreement, though the tribunal expressed strong disapproval over the timing of the disclosure.
3
Creditors in seven connected insolvency petitions opposed the deferment, arguing that a bilateral settlement in one case should not stall proceedings that have been pending since 2024.