Updated February 28th, 2024 at 15:46 IST

SpiceJet and lessor AerCap settle Rs 250 crore dispute

SpiceJet to save Rs 235 crore through this settlement

Reported by: Business Desk
SpiceJet | Image:Republic
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SpiceJet settlement with lessor: Low-cost carrier SpiceJet and Celestial Aviation, a subsidiary of global lessor group AerCap, have mutually settled their $29.9 million dispute through amicable negotiations, avoiding litigation, according to a company release. This as per the official communique, means the aggrieved parties have led to a settlement of Rs 250 crore.    

Executives representing SpiceJet and Celestial Aviation, as per the company release, informed a bench of the National Company Law Tribunal (NCLT) last week said that the settlement terms had been reached. A plea was made in the court, seeking an adjournment. “The court graciously granted the adjournment. The matter is now scheduled to be formally withdrawn on March 1, 2024,” said a company statement. 

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SpiceJet recently secured investments totaling Rs 1,060 crore through a preferential issue, with notable investors including Aries Opportunities Fund Limited and Elara India Opportunities Fund Limited. Part of these funds will be allocated towards settling past liabilities. Ajay Singh, Chairman and Managing Director, SpiceJet, said, "I am pleased to announce that SpiceJet and Celestial Aviation have successfully resolved our $29.9 million dispute through mutual agreement,” 

“This settlement marks a significant step forward for both parties and underscores our commitment to finding amicable solutions to complex challenges. With this resolution, we can now focus on revamping our fleet and driving our business forward. I am grateful for the support of our stakeholders, including our investors, as we navigate through this process," said the SpiceJet CMD. 

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In August last year, Celestial Aviation Services initiated insolvency proceedings actions against SpiceJet, citing a failure to pay $29.9 million for leasing nine aircraft.

Celestial Aviation is among five leasing companies that have petitioned the NCLT for the recovery of outstanding payments from SpiceJet. The list includes Willis Lease Finance Corp, Wilmington, Aircastle, and Alterna Aircraft BV Ltd. However, the tribunal has rejected the insolvency applications from Wilmington Trust SP Services (Dublin) in January and Willis Lease Finance in December of the last year.

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Published February 28th, 2024 at 15:46 IST