SpiceJet and Cross Ocean Partners Settle about $11.2 Million dispute

SpiceJet announced today that it has reached a settlement terms with aircraft leasing firm, Cross Ocean Partners, resolving a dispute of about $11.2 million (INR 93 Crore). The parties made this joint announcement before the Delhi High Court in the ongoing execution petition being pursued by Cross Ocean Partners. The settlement is expected to result in significant savings for SpiceJet and also put an end to dispute. As part of the arrangement, the airline will also benefit from transfer of airframe and an engine at no additional cost, augmenting its operational capabilities.

By resolving this dispute through amicable negotiations, SpiceJet and Cross Ocean Partners have demonstrated their commitment to finding mutually beneficial solutions and avoiding prolonged litigation.

Ajay Singh, Chairman and Managing Director, SpiceJet, said, "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. The settlement, valued at $29.9 million (INR 250 Crore), further underscores SpiceJet's dedication to resolving disputes and strengthening its financial position.

Shares of SPICEJET LTD was last trading in BSE at Rs. 62.58 as compared to the previous close of Rs. 63.53. The total number of shares traded during the day was 3974422 in over 12554 trades.

The stock hit an intraday high of Rs. 64.44 and intraday low of 61.61. The net turnover during the day was Rs. 250236093.00.

Source : Equity Bulls

Keywords

SPICEJET INE285B01017 Settlement AircraftLeasingFirm CrossOceanPartners