Shares of troubled low-budget carrier SpiceJet gained as much as 3 percent on October 15 after the company informed that it has reached a settlement with two more lessors for an aggregated sum of $5 million.
SpiceJet settled a $23.39 million dispute with Aircastle (Ireland) Designated Activity Company and Wilmington Trust SP Services (Dublin) for a total payment of $5 million, along with an agreement on the handling of specific aircraft engines.
Both parties reached the agreement through amicable negotiations, choosing to resolve the matter outside the courtroom, the airline said in a statement.
As part of the settlement, all ongoing litigations and disputes between the parties will be withdrawn at the appropriate forums. Worth noting is that this is SpiceJet’s third settlement since last month.
Earlier on October 9, the airline resolved a $131.85 million dispute with lessors Horizon Aviation 1 Ltd., Horizon II Aviation 3 Ltd., and Horizon III Aviation 2 Ltd. (under the management of Babcock & Brown Aircraft Management) for $22.5 million.
Before that on September 24, the company settled a dispute with Engine Lease Finance Corporation (ELFC), which initially claimed $16.7 million, for an undisclosed lower amount.
In a statement issued by SpiceJet, Ajay Singh, the company Chairman and Managing Director said, “With this and other significant settlements, SpiceJet continues to strengthen its financial position and lay the groundwork for a more resilient future.”
The airline added that these three key settlements in rapid succession showcase SpiceJet’s dedication to addressing its financial challenges and securing a stronger, more stable foundation for future growth and operational efficiency.
At 10:44 am, SpiceJet shares were trading over a percent higher at Rs 66.60 on the BSE in the previous session. So far this year, the stock has risen around 10 percent, underperforming Sensex's returns of 15 percent.
In the last year, the counter has risen around 67 percent compared to the benchmark gain of 27 percent during this period.
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