 "SpiceJet, Willis Lease settle dispute; insolvency case to be withdrawn")
SpiceJet has settled its dispute with global aircraft engine lessor Willis Lease Finance Corporation, the airline said in an exchange filing on Thursday. As a part of the agreement, Willis Lease has withdrawn its insolvency case against the airline, providing a crucial relief to the budget airline. This marked another significant step in the airline’s financial restructuring.
A ₹3,000 crore capital infusion via a qualified institutional placement (QIP) in September 2024 and an additional ₹294.09 crore investment by promoter Ajay Singh have helped the airline move towards financial stability. These funds have helped SpiceJet to clear outstanding liabilities and focus on operational growth.
Commenting on the latest development, Chairman and Managing Director of SpiceJet Ajay Singh said this successful resolution (with Willis Lease) reflects the positive impact of its financial restructuring efforts. “The QIP and promoter funding have strengthened our ability to settle past disputes, improve financial stability, and drive operational growth. We are grateful for the continued support of our partners and stakeholders as we work towards a stronger and more resilient airline,” said Singh.
SpiceJet settlements
The agreement with Willis Lease is the latest in a series of settlements SpiceJet has secured with key lessors. At the end of 2024, the airline resolved a $16 million dispute with Genesis, an aircraft leasing firm, under which Genesis acquired a $4 million stake in SpiceJet as part of the settlement. The airline also agreed to pay $6 million to Genesis to fully close the matter.
SpiceJet previously also settled disputes with multiple aircraft and engine lessors, including Horizon Aviation, Engine Lease Finance Corporation, Aircastle, Wilmington Trust SP, Shannon Engine Support Ltd, and Export Development Canada. These settlements are integral to SpiceJet’s broader restructuring plan, aimed at reducing liabilities and ensuring long-term financial sustainability.
SpiceJet funding
The ₹3,000 crore raised through the QIP in September 2024 played a pivotal role in facilitating these settlements. The QIP was oversubscribed, attracting 87 domestic and international investors, reflecting strong market confidence in the airline’s turnaround strategy. Since September 26, 2024, SpiceJet has systematically cleared several dues.