SpiceJet
SpiceJet shares soar 8% as airline settles $132 million dispute with 3 lessors for $22.5 million
New Delhi/IBNS: Shares of SpiceJet Ltd. surged by 8 percent on Wednesday (Oct. 9) after the low-cost airline announced that it had successfully settled its dispute with three of its lessors.
The total dispute, originally valued at $131.85 million (approximately Rs 1,107 crore), was resolved for $22.5 million, according to a statement from SpiceJet.
The airline highlighted that this settlement is one of the largest financial agreements in its history and represents a significant step toward improving its balance sheet and lowering overall liabilities.
The news boosted SpiceJet’s stock, which rose by 8.24 percent to reach a high of Rs 67.98 on the BSE.
Over the past year, the stock has gained 92.14 percent.
"By resolving this substantial dispute, SpiceJet has overcome a major challenge, positioning itself for better financial stability and operational performance," the airline said in a filing with the BSE.
The agreement involved settlements with Horizon Aviation 1, Horizon II Aviation 3, and Horizon III Aviation 2, all of which are lessors managed by Babcock & Brown Aircraft Management (BBAM).
This follows SpiceJet’s successful resolution of a $16.7 million dispute with Engine Lease Finance Corporation (ELFC) on Sept. 24.
SpiceJet Chairman and Managing Director Ajay Singh expressed that the settlement with BBAM significantly reduces the company’s liabilities and supports its ongoing efforts to strengthen its financial health.
"With this settlement and the funds raised from our recent QIP (qualified institutional placement), we are now well-positioned to focus on growth, restoring our grounded fleet, and expanding our services," Singh said.
This resolution comes shortly after SpiceJet completed its QIP on Sept. 20, raising Rs 3,000 crore.
The placement attracted considerable interest from a wide range of leading institutional investors and funds, Singh noted.
With a stronger financial foundation and plans for fleet expansion, SpiceJet aims to rebuild its reputation for operational efficiency, reliability, and customer satisfaction, Singh said.
"The airline is committed to offering passengers enhanced connectivity, a broader range of travel options, and a seamless flying experience," he added.
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