SpiceJet flies 3% after lessor Aircastle withdraws insolvency case

SpiceJet shares advanced up to 3.2 per cent on BSE in Thursday's trade and logged an intraday high of Rs 63.4 per share. The stock rose after Aircraft lessor Aircastle (Ireland) withdrew its insolvency case against SpiceJet.

 

Around 12:03 PM, SpiceJet's share price was up 0.99 per cent at Rs 62 per share on BSE. In comparison, the BSE Sensex was up 0.97 per cent at 79,453.01. The market capitalisation of the company stood at Rs7,940.04 crore. The 52-week high of the stock stood at Rs 79.9 per share and the 52-week low was at Rs 42.05 per share. 

 

"Aircraft lessor Aircastle (Ireland) Designated Activity Company has withdrawn its insolvency case against SpiceJet before the National Company Law Tribunal (NCLT)," the filing read. 

 

Last month, SpiceJet announced the resolution of a $23.39 million dispute with Aircastle (Ireland) designated activity company and Wilmington Trust SP Services (Dublin) Limited. 

 

The settlement was reached for an aggregate sum of $5 million, alongside an agreement on the treatment of certain aircraft engines. Both parties opted for an amicable negotiation process, successfully avoiding prolonged courtroom proceedings.

 

As part of the settlement, all ongoing litigations and disputes between the two parties have been withdrawn from the appropriate forums, as per the filing. 

 

Recently, two insolvency petitions were filed by Sabarmati Aviation and JetAir 17 against Spicejet at the National Company Law Tribunal (NCLT).

 

The NCLT issued a notice to the airline over the plea by operational creditor Sabarmati Aviation while asking another complainant, JetAir 17, to file additional documents in support of its claims of USD 27 million.

 

SpiceJet operates both domestic and international flights, serving various cities across India and several international destinations in Asia, the Middle East, and beyond. The airline offers a range of services, including passenger air travel, cargo, and charter services. With a fleet of narrow-body aircraft, SpiceJet has established itself as one of the leading carriers in India's competitive aviation market, known for its focus on punctuality, customer service, and affordable airfares. 

 

Despite facing challenges in the highly competitive airline industry, SpiceJet has managed to expand its network, focusing on both full-service and low-cost travel options to cater to a diverse set of travelers.

 

In the past one year, SpiceJet shares have gained 37 per cent against Sensex's rise of 21 per cent.