SpiceJet share price rises after Aircastle drops insolvency case

In September, SpiceJet announced the resolution of a $23.39 million dispute with Aircastle (Ireland) Designated Activity Company and Wilmington Trust SP Services (Dublin) Limited.

In Short

• SpiceJet shares rise after Aircastle withdraws insolvency case
• Settlement reached with Aircastle over $23.39 million dispute
• Shares climbed nearly 3% to Rs 63.40 post-announcement

Low-cost airline SpiceJet's shares rose in early trade on Thursday after aircraft lessor Aircastle withdrew its insolvency case against the airline. This development followed a mutually agreed settlement between the two parties. SpiceJet announced the news in a press release, marking a step forward in its efforts to strengthen relationships with its partners.

Following the announcement, SpiceJet's shares climbed to Rs 63.40, a nearly 3% increase. By 11:10 AM, the shares were trading at Rs 61.98, up almost 1%. .

In September, SpiceJet announced the resolution of a $23.39 million dispute with Aircastle (Ireland) Designated Activity Company and Wilmington Trust SP Services (Dublin) Limited. The settlement amount was agreed at $5 million, along with specific terms for handling certain aircraft engines. The mutual agreement helped avoid prolonged legal battles and ensured the withdrawal of all ongoing disputes from various legal forums.

SpiceJet, in an exchange filing, said, "This follows a mutually agreed-upon settlement, marking a positive turn in the airline's efforts to rebuild and strengthen ties with its partners."

The resolution with Aircastle is part of SpiceJet's broader initiative to settle disputes with several partners, including aircraft lessors. The airline has been actively working on rebuilding its financial stability and operational efficiency.

Last month, SpiceJet successfully raised Rs 3,000 crore through a Qualified Institutional Placement (QIP). The funds are being used to address pending liabilities, improve fleet operations, and stabilise its business.

The airline is also focusing on revamping its operations by resolving issues with vendors and lessors, aiming to restore confidence among its stakeholders.