28 Nov , 2024 By : Debdeep Gupta
Shares of SpiceJet rose 3 percent on November 28 after Ireland-based aircraft lessor Aircastle withdrew its insolvency case against the low-cost carrier before the National Company Law Tribunal (NCLT). "This follows a mutually agreed-upon settlement, marking a positive turn in the airline's efforts to rebuild and strengthen ties with its partners," SpiceJet said in an exchange filing.
Last month, SpiceJet resolved a $23.39 million dispute with Aircastle and Dublin-based Wilmington Trust SP Services. The settlement was finalized for a total of $5 million, along with an agreement on the handling of specific aircraft engines. Both parties chose amicable negotiations, effectively sidestepping lengthy courtroom battles.
At 10.10 am, shares of SpiceJet were trading at Rs 62.90 on the NSE.
As part of the settlement, all ongoing litigations and disputes between SpiceJet and the involved parties have been withdrawn from the respective forums.
This development represents another major step forward for SpiceJet, which has been steadily resolving disputes with various partners, including aircraft lessors. The airline’s recent successful Rs 3,000 crore Qualified Institutional Placement (QIP) has provided a crucial financial boost, enabling it to address such issues and fortify its operations, the company said.
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