SpiceJet Settles Lawsuits, Eyes Growth

SpiceJet MD Confident Following Legal Resolutions

SpiceJet has quietly settled two additional debt-related lawsuits. The low-cost carrier resolved disputes with Cross Ocean Partners’ special purpose vehicle, VS MSN 36118 Designated Activity Company (DAC), and Horizon Aircraft Finance’s SPV, Horizon Aviation 1 Limited.

Filings from the High Court of Delhi reveal that on October 29, 2024, the court confirmed that Horizon Aircraft Finance had received full payment from SpiceJet, effectively concluding the case of Horizon Aviation 1 Limited & Ors v. SpiceJet Limited. Previously, the court noted that the parties had reached an “amicable settlement” regarding a dispute valued at USD 131.85 million. As part of this settlement, SpiceJet paid USD 22.5 million.

On November 14, the court was informed that the parties involved in the case of CAY Designated Activity Company v. SpiceJet Limited (VS MSN 36118) had reached a settlement, and an executed agreement would soon be presented to the court. Cross Ocean Partners pursued the airline in the High Court after a judgment was awarded in June 2023 by the UK High Court. They had utilized a special purpose vehicle (SPV) to lease a B737-700, registered as VT-SLP, to SpiceJet. However, in 2020, SpiceJet began defaulting on its monthly lease payments, prompting the SPV to sue for damages.

SpiceJet’s Managing Director, Ajay Singh, mentioned that efforts to strengthen the brand and improve performance this year have yielded positive results. In a bullish message to shareholders in the FY 2023-24 Annual Report released on December 7, he stated that a capital raise of INR 30 billion (USD354 million) in September, along with an expected INR 7.36 billion (USD 86.7 million) from a previous funding round, had significantly bolstered the airline’s financial position.

“We defied sceptics in 2015, and once again, we have proven them wrong,” Singh wrote.

“With renewed enthusiasm and fresh capital, we are fully committed to restructuring our balance sheet and settling all outstanding dues. We have already cleared all pending GST [goods and services tax] and TDS [income tax deducted at source] obligations, and we remain focused on finalizing several key settlements soon.”

“A significant portion of the raised capital will be dedicated to ungrounding our fleet and increasing our aircraft count,” he added. “We have earmarked INR 8 billion (USD 94.5 million) for the ungrounding and upgrading of our fleet, and I am confident that by 2026, SpiceJet will be operating with a fleet of 100 aircraft.”

Recently, SpiceJet has successfully settled disputes with several parties, including Aircastle, Export Development Canada, Engine Lease Finance Corporation, three special purpose vehicles from BBAM, Wilmington Trust SP Services (Dublin), Shannon Engine Support Limited, and Raymach Technologies.