Today, SpiceJet witnessed a surge in buying interest as the aviation company announced the settlement of a ₹93 crore dispute with aircraft leasing firm Cross Ocean Partners. The joint declaration was made before the Delhi High Court by both companies as part of an ongoing execution petition pursued by Cross Ocean Partners.
SpiceJet’s share price opened higher at ₹62.90 apiece on the NSE and quickly reached an intraday high of ₹65 per share following the news of the dispute settlement. This surge represented a 4 percent increase from its previous close of ₹62.58 apiece on the NSE.
According to SpiceJet’s latest exchange filing, the settlement is expected to lead to significant cost savings for the company and bring an end to the dispute. Additionally, SpiceJet will benefit from the transfer of an airframe and an engine at no extra cost, enhancing its operational capabilities.
Ajay Singh, Chairman and Managing Director of SpiceJet, expressed satisfaction with the resolution, stating, “We are pleased to have reached a mutually acceptable resolution with Cross Ocean Partners, which will result in significant cost savings for SpiceJet and also cease prolonged expensive litigation. This settlement reinforces our commitment to effectively settle with our partners and strengthen our operational capabilities. We remain focused on sustaining the positive momentum and creating long-term value for our stakeholders.”
In addition to this settlement, SpiceJet recently concluded a similar agreement with Celestial Aviation, a subsidiary of AerCap, one of the largest aircraft lessor groups. This settlement, valued at $29.9 million (INR 250 Crore), further highlights SpiceJet’s dedication to resolving disputes and bolstering its financial position.
Disclaimer: The views and recommendations above are those of individual analysts, experts, and broking companies, not of LegalParivar.com. We advise investors to check with certified experts before making any investment decisions.
