SpiceJet Settles Rs 136 Cr Dispute with Genesis - Details

SpiceJet has announced an amicable settlement with Genesis, bringing closure to their $16 million dispute. Under the agreement, SpiceJet will pay $6 million to Genesis while offering a $4 million equity stake at a price of Rs 100 per share.

SpiceJet, Genesis: Key Terms of the Settlement

The settlement also ensures the withdrawal of all ongoing legal disputes and litigations between the parties. Ajay Singh, Chairman and Managing Director of SpiceJet, emphasized, “This settlement marks another crucial step in our journey towards financial stability. We are pleased to have resolved this matter amicably with Genesis through constructive negotiations. This agreement, which includes Genesis acquiring an equity stake in SpiceJet, will significantly reduce our financial liabilities and further strengthen our balance sheet.”

Singh added that the agreement would help reduce financial liabilities, strengthen the company’s balance sheet, and pave the way for long-term growth.

This resolution is part of a series of settlements SpiceJet has achieved with lessors, including Horizon Aviation and Carlyle Aviation. Notably, Carlyle Aviation converted $30 
million of lease arrears into equity earlier in September 2024. 

‘In September 2024, Carlyle Aviation agreed to convert $30 million of lease arrears into SpiceJet equity at INR 100 per share, signalling increasing confidence from stakeholders in the airline’s financial and operational recovery,’ the company said in the exchange fling.

Spice Jet QIP 
This financial clean-up comes on the heels of a successful Qualified Institutional Placement (QIP) in which SpiceJet raised Rs 3,000 crore.

Spicejet Clear PF Dues 
A Few days back, SpiceJet made a major stride toward financial accountability by clearing all pending employee provident fund (PF) dues totalling Rs 160.07 crore. These dues, which spanned over two years, were settled within three months, underscoring the airline's renewed focus on employee welfare and fiscal discipline

SpiceJet’s financial turnaround was further recognized by Acuité Ratings & Research Limited, which recently upgraded the airline's credit rating by four notches. This demonstrates growing optimism in SpiceJet's operational resilience and recovery strategy.

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