SpiceJet Ltd shares rose 8% in Wednesday trading after the airline announced a peaceful settlement of its dispute with three of its lessors. SpiceJet said that the dispute, which was worth $131.85 million or Rs 1,107 crore in total, had been settled for $22.5 million.
The settlement is one of SpiceJet's largest financial agreements, indicating a move toward improving the airline's balance sheet and decreasing total liabilities, according to a BSE filing.
Following the decision, the airline operator's stock rose 8.24 percent to a high of Rs 67.98 on the BSE. The stock is up 92.14 percent in the last year.
"By resolving this major dispute, SpiceJet has cleared a significant hurdle, paving the way for improved financial stability and operational efficiency," the company stated.
This settlement with Horizon Aviation 1, Horizon II Aviation 3, and Horizon III Aviation 2, the lessors managed by Babcock & Brown Aircraft Management (BBAM), follows SpiceJet's successful resolution of a dispute with Engine Lease Finance Corporation (ELFC) on September 24, which sought $16.7 million.
SpiceJet Chairman and Managing Director Ajay Singh stated that the settlement with BBAM allows his firm to drastically decrease liabilities and strengthens its efforts to become a more strong airline.
"Together with the funds raised through our QIP, we are well-positioned to focus on growth, ungrounding our fleet, and expanding our services," Mr. Singh added.
This settlement comes after SpiceJet completed a successful qualified institutional placement (QIP) on September 20, raising Rs 3,000 crore. According to Singh, the QIP received tremendous interest from a wide collection of top-tier institutional investors and funds.
SpiceJet is prepared to reclaim its reputation for efficiency, dependability, and customer satisfaction, Singh said.
"The airline aims to provide passengers with improved connectivity, a wider range of travel options, and a seamless flying experience," stated the CEO of Spicejet.
