SpiceJet and Celestial Aviation, an AerCap subsidiary and a major aircraft lessor group, have amicably resolved their $29.9 million (INR 250 Crore) disagreement through negotiations. As per an exchange filing the companies have avoided litigation by reaching a mutual settlement.
Last week, representatives from both parties notified an NCLT (National Company Law Tribunal) bench that they had reached settlement terms. The formal withdrawal of the matter is scheduled for March 1st, 2024.
SpiceJet has recently obtained Rs 1060 Crore in investments through a preferential issue, with notable investors such as Aries Opportunities Fund Limited and Elara India Opportunities Fund Limited participating. Some of these funds will go towards settling past liabilities.
"SpiceJet and Celestial Aviation have successfully resolved $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," Ajay Singh, Chairman and Managing Director, SpiceJet, stated in the exchange filing.
Last year, Celestial Aviation had commenced insolvency proceedings against SpiceJet, citing the airline's non-payment of $29.9 million for leasing nine aircraft. Celestial Aviation was one of the many leasing firms that had moved to NCLT to recover dues from SpiceJet.
The aviation company's shares have yielded an annual return of over 75 per cent, on BSE.
