SpiceJet says deal entered with aircraft lessor for dues

SpiceJet on Monday said it has signed a deal with one of its aircraft lessors over the payment of dues, after the Supreme Court last week ordered six such planes to be de-registered by the civil aviation regulator.

"Under the said settlement agreement, the lessor has agreed to withdrawal of court proceedings and de-registration process of aircraft subject to SpiceJet satisfying the terms of settlement," the budget carrier said in a statement.

The settlement agreement is with Wilmington Trust SP Services of Dublin with regard to aircraft operated by SpiceJet.

Justice Rajiv Shakdher of Delhi High Court had last week ordered the de-registration of six aircraft leased out to SpiceJet and had also directed the Directorate General of Civil Aviation to decide in two weeks' time a plea by two Irish firms to export the planes.

The court's directives came on the pleas of leading global aircraft lessors AWAS Ireland and Wilmington Trust SP Services of Dublin. The firms sought directions to de-register the aircraft leased by them to SpiceJet, on grounds of alleged non-payment of dues.

The latest developments have come even as co-founder Ajay Singh, now back at the airline's helm, purportedly intervened and paid $10 million of the dues earlier this month. The airline had said the remaining amount was expected to be settled soon with the lessors.

In Singh's second innings with the airline, he and his associates bought back the 53.5-percent stake in the airline that was sold to the Marans of Chennai, who own the Sun Group.

Soon after the news, SpiceJet stock rose sharply to Rs.23 and was quoting at Rs.21.30 an hour before the closing bell on Bombay Stock Exchange, with a gain of Rs.0.70 or 3.26 percent.