SpiceJet settles legal dispute with AerCap, saving ₹235 crore

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₹250 Crore) dispute, avoiding a prolonged legal battle, on February 29, as per an official release. The settlement was reached through mutual negotiations and approved by the National Company Law Tribunal (NCLT) last week. The formal withdrawal of the case is scheduled for March 1, 2024.

Ajay Singh, Chairman and Managing Director, of SpiceJet, said, "I am pleased to announce that SpiceJet and Celestial Aviation have successfully resolved our $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." SpiceJet recently secured investments totalling ₹1060 crore through a preferential issue, with notable investors including Aries Opportunities Fund Limited and Elara India Opportunities Fund Limited. Part of these funds will be allocated towards settling past liabilities, the company further added. In August last year, Celestial Aviation Services initiated insolvency proceedings actions against SpiceJet, citing a failure to pay $29.9 million for leasing nine aircraft.

Celestial Aviation is among five leasing companies that have petitioned the NCLT for the recovery of outstanding payments from SpiceJet. The list includes Willis Lease Finance Corp, Wilmington, Aircastle, and Alterna Aircraft BV Ltd. However, the tribunal has rejected the insolvency applications from Wilmington Trust SP Services (Dublin) in January and Willis Lease Finance in December of the last year.