An aircraft lessor is heading to Delhi High Court to execute a judgment it obtained against SpiceJet (SG, Delhi International) in the UK High Court. Cross Ocean Partners, the lessor behind the special purpose vehicle (SPV) known as VS MSN 36118 CAY Designated Activity Company, is pursuing the low-cost carrier for around INR900 million rupees (USD10.8 million) in unpaid leases.
First reported by the Indian financial news site MoneyControl, the SPV filed the matter with Delhi High Court on November 21, following a judgment in its favour in the UK in June. The UK matter was VS MSN 36118 CAV Designated Activity Company vs. Spicejet Limited (case no: CL-2022-000479). Counsel for VS MSN 36118 CAV told the court that SpiceJet had periodically defaulted on its monthly lease payments for a B737-700 since late 2020. That aircraft is registered as VT-SLP (msn 36118) and continues to fly for the carrier, something the lessor wants to stop. Cross Ocean also wants access to the Boeing twinjet for inspection purposes.
Under the terms of the 2018 lease contract, VS MSN 36118 CAV successfully obtained payment orders for past-due leases as well as future lease payments. The initial lease term was 96 months, with a 2026 return date. SpiceJet's counsel told the court that the airline intended to "regularise" its payments on VT-SLP as soon as December 2023.
Cross Ocean Partners is one of several entities pursuing SpiceJet in different courts in India. A High Court action brought by Credit Suisse is on hold pending the airline meeting the terms of a settlement agreement, while another action brought by former majority shareholder Kalanithi Maran and entities associated with him remains active. Separately, there are multiple lessors and suppliers, including Aircastle, Willis Lease Finance, Celestial Aviation Services, and Wilmington Trust SP Services (Dublin), attempting to have SpiceJet declared insolvent in the National Company Law Tribunal.
