Aircastle drops insolvency case against SpiceJet after $5.6 mn settlement

Earlier in November, the airline had announced the resolution of a $23.39 million dispute involving Aircastle (Ireland) Designated Activity Company and Wilmington Trust SP Services (Dublin) Ltd

SpiceJet announced on Thursday that Aircastle (Ireland) Designated Activity Company, an aircraft lessor, has withdrawn its insolvency case against the airline before the National Company Law Tribunal (NCLT) following a $5.6 million settlement.

 

In an exchange filing, the airline said, “Aircraft lessor Aircastle (Ireland) Designated Activity Company has withdrawn its insolvency case against SpiceJet before the NCLT. This follows a mutually agreed-upon settlement, marking a positive turn in the airline’s efforts to rebuild and strengthen ties with its partners.”

Previous settlement with Aircastle and Wilmington Trust

Earlier in November, SpiceJet announced the resolution of a $23.39 million dispute involving Aircastle (Ireland) Designated Activity Company and Wilmington Trust SP Services (Dublin) Ltd.

 

 

“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,” the airline said.

Withdrawal of all ongoing disputes

As part of the recent settlement, both parties agreed to withdraw all ongoing litigation and disputes from the relevant forums.

 

“This development marks another significant milestone for SpiceJet, which has been actively resolving disputes with various partners, including aircraft lessors,” it said.

 

The airline’s financial position was further strengthened by its successful Rs 3,000 crore Qualified Institutional Placement (QIP). This move has given the airline the necessary funds to address its financial challenges and bolster its operations, it said.

Successful QIP and investor participation

In September, SpiceJet secured Rs 3,000 crore through the sale of shares to qualified institutional buyers. The oversubscribed QIP saw participation from international investors, including Societe Generale — ODI, Goldman Sachs (Singapore) Pte — ODI, Nomura Singapore Ltd ODI, and Discovery Global Opportunity (Mauritius). The airline’s fundraising committee approved the allotment of over 48.70 crore shares at Rs 61.60 each to more than 80 QIP participants, according to the filing.