Budget carrier SpiceJet on Thursday said it has no plans to file for insolvency proceedings and has also started the process of reviving its grounded fleet with $50 million.

The statement from SpiceJet comes at a time a lessor has filed an insolvency resolution plea against the airline and crisis-hit rival Go First being admitted for voluntary insolvency resolution proceedings by the National Company Law Tribunal (NCLT) on Wednesday.

While citing the recent developments in the Indian aviation market, SpiceJet said it has no plans whatsoever to file for insolvency.

“We want to scotch any speculation that may have arisen due to the filing by another airline. The airline is firmly focussed on its business and remains in active talks with investors to raise funds,” it said in a statement.

On May 8, the NCLT issued a notice to the budget carrier on the insolvency plea filed by lessor AirCastle (Ireland) Ltd and the matter is scheduled for a hearing next week.

Besides, lessors have sought the deregistration of three planes of SpiceJet.

“There is absolutely no question of filing for insolvency. Any rumour regarding the same is completely baseless. We are focused firmly on reviving our grounded fleet and getting more and more planes back into the air,” SpiceJet chairman and managing director Ajay Singh said.

SpiceJet also said that it has initiated the process ofreviving its grounded fleet with the $50 million funds received by the airline from the government’s Emergency Credit Line Guarantee Scheme (ECLGS) and internal cash accruals.

Go First NPA

Lenders to Go First Ltd will classify their loans to the company as “non-performing” in the current quarter, but are hopeful that the collateral backing the credit would reduce the amount of haircut they have to take, two banking sources said on Thursday.

The low-cost carrier was granted bankruptcy protection by a company court on Wednesday, which also halted the repossession of planes by lessors.