SpiceJet on Thursday announced that aircraft lessor Aircastle (Ireland) Designated Activity Company has withdrawn its insolvency case against the airline before the National Company Law Tribunal (NCLT), after reaching a $5.6 million settlement. This comes as a major relief for SpiceJet. The development 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 a statement.
Earlier last month, SpiceJet had announced the resolution of a $23.39 million dispute with Aircastle (Ireland) Designated Activity Company and Wilmington Trust SP Services (Dublin) Limited. “The settlement was reached for an aggregate sum of $5 million, alongside an agreement on the treatment of certain aircraft engines. Both parties opted for an amicable negotiation process, successfully avoiding prolonged courtroom proceedings,” it added.
As part of the settlement, all ongoing litigations and disputes between the two parties have been withdrawn from the appropriate forums.
This marks another significant milestone for SpiceJet, which has been resolving disputes with various partners, including aircraft lessors. The airline’s recent successful Rs 3000 crore Qualified Institutional Placement has provided the necessary financial impetus to address these issues and strengthen its operations.
SpiceJet had, in September, announced that it has secured Rs 3000 crore through the sale of shares to qualified institutional buyers. Investors in the oversubscribed Qualified Institutional Placement (QIP) included foreign entities such as Societe Generale – ODI, Goldman Sachs (Singapore) Pte – ODI, Nomura Singapore Ltd ODI, and Discovery Global Opportunity (Mauritius). On September 20, the airline’s fundraising committee approved the allotment of over 48.70 crore shares at Rs 61.60 each to more than 80 QIP participants, stated a regulatory filing.