Aircraft lessor Genesis will acquire a $4 million stake in SpiceJet as part of an amicable settlement of a $16 million dispute. This agreement marks a significant step in resolving financial challenges for the budget airline, which recently raised Rs 3,000 crore.
SpiceJet has reached an agreement with Genesis to settle their $16 million dispute. As part of the resolution, SpiceJet will pay Genesis $6 million. Additionally, Genesis will acquire equity worth $4 million at a price of Rs 100 per share. This strategic move will strengthen SpiceJet’s financial stability while fostering a collaborative relationship with its lessor.
Both parties have agreed to withdraw all ongoing litigation and disputes, ensuring a fresh start. This settlement demonstrates the airline’s proactive approach to addressing financial challenges.
Aircraft lessor Genesis strengthens stake in SpiceJet
This partnership follows SpiceJet’s efforts to settle disputes with various lessors, including Horizon Aviation, Engine Lease Finance Corporation, Aircastle, and others. Genesis’ equity acquisition not only resolves past issues but also reinforces the airline’s operational framework.
SpiceJet’s shares responded positively to the news, jumping 7.84% to Rs 60.69 apiece in mid-morning trade on the BSE. This reflects growing investor confidence in the airline’s ability to navigate financial turbulence.
Broader impacts
The agreement with Genesis is part of SpiceJet’s larger strategy to stabilize operations and enhance financial health. In September, the airline converted $30 million in lease arrears into equity with Carlyle Aviation. These settlements highlight SpiceJet’s commitment to restructuring and building trust with key stakeholders.
SpiceJet continues to rebuild relationships with lessors and other entities, ensuring long-term operational viability. The partnership with Genesis symbolizes a pivotal moment in the airline’s recovery journey.
By addressing financial disputes and reinforcing partnerships with lessors like Genesis, SpiceJet is positioning itself for a more stable future. This collaboration underscores the importance of strategic resolutions in sustaining growth in the aviation sector.
