PUNE: SpiceJet on Tuesday claimed that it had successfully resolved its dispute with Engine Lease Finance Corporation (ELFC) through an amicable settlement. ELFC, which had previously claimed $16.7 million, has agreed to settle for an undisclosed amount, which is lower than the initial claim.
The representatives of both parties will now formalise the settlement agreement, with a view to withdrawing all ongoing litigation and ending disputes between them.This settlement marks a significant step in SpiceJet’s ongoing efforts to streamline its operations and focus on future growth.
SpiceJet has raised Rs. 3000 crore through its recently concluded Qualified Institutional Placement (QIP), which investors significantly oversubscribed. The QIP attracted a diverse pool of top-tier institutional investors and mutual funds, reaffirming the market’s belief in SpiceJet’s ability to navigate industry challenges and capitalise on the growing demand in the aviation sector, airline officials said.
Ajay Singh, chairman and managing director of SpiceJet
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said, “We are pleased to have reached a mutually beneficial settlement with ELFC, which enables us to move forward with a clean slate. This agreement not only resolves past issues but also strengthens our position as we embark on the next phase of growth and expansion.”
SpiceJet’s successful QIP has significantly boosted the airline’s financial standing. The funds raised are earmarked for a variety of strategic initiatives, including settling past liabilities, operational expansion, and enhancing the airline’s fleet and services. With the QIP in place and key disputes resolved, SpiceJet is well-positioned for robust future growth.