ELFC and SpiceJet Reach Deal
According to a September 24 Bombay Stock Exchange report, SpiceJet and Engine Leasing Finance Corporation (ELFC) have resolved their USD 16.7 million leasing dispute. The low-cost carrier claims that the dispute was “amicably” resolved for a sum that was not disclosed and was less than what was alleged.
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The lessor filed a lawsuit against SpiceJet in the National Company Law Tribunal (NCLT) for many years’ worth of lease violations on nine engines. In addition, SpiceJet had negotiated payback plans, missed payments on settlement agreements, and continued to use the final retained engine even after committing to stop. On September 26, Engine Lease Finance BV v. SpiceJet Limited (case no. C.P. (IB) – 291/2024) will be discussed at the NCLT.
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“We are pleased to have reached a mutually beneficial settlement with ELFC, which enables us to move forward with a clean slate,” said SpiceJet MD Ajay Singh. “This agreement not only resolves past issues but also strengthens our position as we embark on the next phase of growth and expansion.”
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The paper claims SpiceJet’s INR 30 billion (USD 358.9 million) capital raising “has significantly boosted the airline’s financial standing.” A sizeable portion of the money generated will go toward settling lease issues that various lessors of engines and airframes are currently arguing across multiple court settings. SpiceJet reports that all parties will formally execute the settlement agreement to drop all pending legal action and end their Engine Lease Finance case disagreements.
