India’s SpiceJet settles with Engine Lease Finance Corp

SpiceJet (SG, Delhi International) has settled its USD16.7 million lease dispute with Engine Lease Finance Corporation (ELFC) according to a September 24 Bombay Stock Exchange filing. The low-cost carrier says it “amicably” settled the matter for an undisclosed amount that is lower than the claimed amount.

The lessor was pursuing SpiceJet in the National Company Law Tribunal (NCLT) over lease breaches on nine engines dating back several years. SpiceJet had also defaulted on settlement agreements and negotiated repayment plans and kept using the last retained engine, despite agreeing not too. The matter, Engine Lease Finance BV v SpiceJet Limited (case no: C.P. (IB) – 291/2024), is next listed for mention at the NCLT on September 26.

“We are pleased to have reached a mutually beneficial settlement with ELFC, which enables us to move forward with a clean slate,” said SpiceJet MD Ajay Singh. “This agreement not only resolves past issues but also strengthens our position as we embark on the next phase of growth and expansion.”

Earlier this month, SpiceJet raised INR30 billion (USD358.9 million) in a capital raising, which the filing says “has significantly boosted the airline’s financial standing.” A sizeable portion of the money raised will go towards settling lease disputes now running in various legal forums involving a variety of airframe and engine lessors.

In the Engine Lease Finance matter, SpiceJet says both parties will now formalise the settlement agreement, with a view to withdrawing all ongoing litigation and ending disputes between them.

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