SpiceJet Shares Zoomed Over 2%: Settles $23.39 Million Dispute

On October 15, 2024, SpiceJet shares surged over 2% in the morning following the company’s successful resolution of a $23.39 million dispute with Aircastle (Ireland) Designated Activity Company and Wilmington Trust SP Services (Dublin) Limited for a total of $5 million. This agreement also addresses the treatment of certain aircraft engines and was reached amicably, allowing both parties to avoid litigation. As part of the settlement, all ongoing legal disputes between the parties will be withdrawn.

This resolution reinforces SpiceJet’s commitment to restoring financial stability and reducing legal liabilities.

The settlement comes on the heels of two other significant financial agreements. On October 9, SpiceJet settled a $131.85 million dispute with lessors Horizon Aviation 1 Ltd., Horizon II Aviation 3 Ltd., and Horizon III Aviation 2 Ltd. for $22.5 million. Earlier, on September 24, the airline resolved a claim from Engine Lease Finance Corporation (ELFC), which originally sought $16.7 million, for a lower undisclosed amount.

Ajay Singh, Chairman and Managing Director, of SpiceJet, said, “We are pleased to have successfully resolved this long-standing dispute with Aircastle and Wilmington Trust. This settlement underscores our commitment to amicably resolving matters in the best interest of the company and all stakeholders. With this and other significant settlements, SpiceJet continues to strengthen its financial position and lay the groundwork for a more resilient future. We look forward to focusing on our operational goals and enhancing our customer experience.” 

On October 15, 2024, SpiceJet shares opened at ₹66.45 and touched the day high of ₹68.00 at 10:20 AM.

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