SpiceJet wraps up settlement with Irish lessor

SpiceJet on Monday said it has entered into an out-of-court settlement with a Dublin-based aircraft lessor over dues on rentals, days after the DGCA ordered deregistration of its six Boeings.

The airline informed the BSE that the lessor Wilmington Trust SP Services (Dublin) has agreed to withdraw the case in the Delhi High Court.

“This is to inform you that the SpiceJet has on Monday entered into Settlement Agreement with its lessor Wilmington Trust SP Services (Dublin) with regard to aircraft operated by the Company. Under the said Settlement Agreement, the lessor has agreed to withdrawal of court proceedings and deregistration process of aircraft subject to SpiceJet satisfying the terms of settlement," the BSE filing said.

Following the development, the airline’s shares gained over 1 per cent. Opening on a bullish note, SpiceJet’s shares jumped 7.22 per cent to an intra-day high of Rs 23. At the end of the session, the stock closed at Rs 21.65, up 0.93 per cent on the BSE.
The market capitalisation of the company jumped by Rs 11.98 crore to Rs 1,297.81 crore by the end of Monday’s trading session. SpiceJet market capitalisation stood at Rs 1,285.83 crore on March 20.

The Delhi High Court on Thursday ordered deregistering of SpiceJet’s six Boeing aircraft following the termination of lease agreements by leasing companies AWAS Ireland and Wilmington Trust SP Services (Dublin). On Friday, the airline said it has reached an “in-principle” understanding with one of the two lessors already, and is in advanced discussions with the other.

SpiceJet also approached the Delhi High Court on Monday against its order directing DGCA to de-register six Boeing 737 aircraft given on lease by firms, including Wilmington Trust SP Services (Dublin).