Debt-ridden airline SpiceJet on March 5 settled a dispute with one more lessor Cross Ocean Partners, just a week after settling the matter with Celestial Aviation, which had sought insolvency proceedings against the airline.
In a statement, SpiceJet said it has reached a settlement with aircraft leasing firm Cross Ocean Partners and resolved a dispute of about $11.2 million or ₹93 crore.
“Both parties made this joint announcement before the Delhi High Court in the ongoing execution petition being pursued by Cross Ocean Partners,” the airline said.
It added that the settlement is expected to result in significant savings for SpiceJet and also put an end to the dispute. “As part of the arrangement, the airline will also benefit from transfer of airframe and an engine at no additional cost, augmenting its operational capabilities.”
Ajay Singh, Chairman and Managing Director, SpiceJet, said, “We are pleased to have reached a mutually acceptable resolution with Cross Ocean Partners, which will result in significant cost savings for SpiceJet and also cease prolonged expensive litigation."
The airline submitted in the NCLT that funds were being transferred to Celestial as per settlement negotiation and that the lessor will withdraw proceedings shortly. Both the firms had in October 2023 mutually agreed for the settlement outside the courtroom through amicable means.
Celestial Aviation Services was the fifth lessor to have sought insolvency proceedings against SpiceJet.
Following the latest development, SpiceJet shares were trading almost 3% higher at ₹64.42 on BSE at 12:47 pm.
