December 19, 2024
New Delhi, India
SpiceJet Shares
SpiceJet has reached an amicable settlement with aircraft lessor Genesis, resolving a $16 million dispute. The agreement involves a $6 million cash payment and $4 million in equity issuance at ₹100 per share.
Key Highlights
- Settlement Terms:
- $6 million cash payment.
- Genesis acquires $4 million worth of equity at ₹100 per share.
- Withdrawal of all ongoing litigations upon fulfilling settlement terms.
- Investor Reaction:
- Shares jumped 9% on the BSE, trading at ₹60.50.
Statements from Leadership
Ajay Singh, CMD of SpiceJet, called this resolution a “crucial step” toward financial stability, emphasizing its impact on reducing liabilities and strengthening the balance sheet.
Previous Efforts to Stabilize Finances
- In September 2024, Carlyle Aviation converted $30 million lease arrears into equity at ₹100 per share.
- SpiceJet settled disputes with lessors like Horizon Aviation, Aircastle, and Engine Lease Finance Corporation.
Future Plans
- Operate 35 aircraft by March 2025, expanding to 100 by FY27.
- Continue financial restructuring, including converting liabilities to equity.
Conclusion
The Genesis settlement showcases SpiceJet’s strategic focus on operational resilience and stakeholder confidence, marking another milestone in the airline’s journey to regain financial health.
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