SpiceJet Rises 3% As Carrier Settles $23.39mn Dispute With Aircastle, Wilmington Trust
Shares of troubled low-budget carrier SpiceJet gained as much as 3 per cent October 15 after the company informed that it has reached a settlement with two more lessors for an aggregated sum of $5 million.
Budget carrier SpiceJet on Tuesday said it has successfully settled a $23.39 million dispute with two aircraft lessors — Aircastle and Wilmington Trust, days after amicably resolving a similar dispute with a US-based aircraft leasing firm, BBAM.
As part of the settlement, all ongoing litigation and disputes between the parties will be withdrawn at appropriate forums, the airline said in a statement.
SpiceJet has “successfully settled” a $23.39 million dispute with Aircastle (Ireland) Designated Activity Company and Wilmington Trust SP Services (Dublin) Ltd for an aggregate sum of $5 million, together with agreement in relation to the treatment of certain aircraft engines, the statement added.
Both parties have reached this agreement through amicable negotiations, choosing to resolve the matter outside the courtroom, it said.
“We have successfully resolved this long-standing dispute with Aircastle and Wilmington Trust. With this and other significant settlements, SpiceJet continues to strengthen its financial position and lay the groundwork for a more resilient future,” said Ajay Singh, Chairman and Managing Director of SpiceJet.
This settlement follows two other financial agreements by the airline in recent weeks. As apart from the settlement with BBAM earlier this month, on September 24, the company had settled a dispute with Engine Lease Finance Corporation (ELFC), which initially claimed $16.7 million, for an undisclosed lower amount, as per SpiceJet.
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