SpiceJet shares surge by 3.3%
BBN Bureau
Mumbai: Private airline SpiceJet has announced a settlement agreement with Export Development Canada (EDC) to address liabilities totaling Rs. 775 crore, as stated in a filing by the company.
This agreement will result in savings of Rs. 567 crore for SpiceJet, the filing mentioned. As part of this settlement, SpiceJet will acquire 13 EDC-financed A400 aircraft. In 2011, SpiceJet had taken a loan to procure 15 Q400 aircraft, twelve of which are currently grounded.
“The refurbishment and subsequent return to service of these aircraft will enable SpiceJet to promptly commence flights on various regional and UDAN routes,” SpiceJet stated.
“The terms of the liabilities agreement will enable the airline to settle significant liabilities, leading to a comprehensive revitalization of its balance sheet,” the release added.
Shares of SpiceJet witnessed a surge, reaching Rs. 60.7 per share, marking a gain of 3.3 percent as of 1:10 pm.
SpiceJet has been actively settling disputes with its lessors in an effort to strengthen its financial position. The airline recently resolved a dispute worth Rs. 413 crore with aircraft leasing firm Echelon Ireland Madison One.
Additionally, on March 5, SpiceJet announced a settlement with the aircraft leasing firm Cross Ocean Partners for a dispute amounting to approximately Rs. 98 crore. As part of this arrangement, the airline will receive an airframe and engine.
Previously, on February 28, SpiceJet disclosed the settlement of a Rs. 250 crore dispute with Celestial Aviation.
