SpiceJet has resolved a Rs 250-crore dispute with Celestial Aviation, a major aircraft lessor group subsidiary, through negotiations, thus averting litigation. Both parties have communicated to the stock exchanges that the matter will be formally withdrawn on March 1, and the National Company Law Tribunal (NCLT) has been duly informed of the settlement.
Just two days prior, SpiceJet had informed the NCLT that the disagreement with Celestial Aviation was nearly resolved, awaiting only formal procedures.
Ajay Singh, the chairman and managing director of the budget airline, expressed gratitude for stakeholder support during this process, emphasizing a renewed focus on fleet restructuring and business advancement. A recent press statement noted that SpiceJet had successfully secured investments totaling Rs 1,060 crore through a preferential issue, with notable investors such as Aries Opportunities Fund Limited and Elara India Opportunities Fund Limited. A portion of these funds will be allocated toward settling outstanding liabilities.
Previously, in October 2023, SpiceJet had informed the tribunal of its intent to explore settlement possibilities with Celestial. By December 2023, SpiceJet reported having made certain payments to Celestial Aviation, albeit missing some deadlines. Celestial’s counsel, Nitin Sarin, confirmed receipt of these payments.
Despite operational challenges, SpiceJet recorded a notable 160 percent surge in its consolidated net profit to Rs 110 crore for the December quarter.
