As part of the agreement, SpiceJet will settle $6 million with Genesis, while Genesis will invest $4 million in SpiceJet equity at a valuation of Rs 100 per share.
“SpiceJet has reached an amicable settlement with Genesis, resolving their over $16 million dispute. Under the agreement, SpiceJet will pay Genesis $6 million and Genesis will acquire $4 million in SpiceJet equity at a price of INR 100 per share,” said the company in an exchange filing.
Both parties have agreed to withdraw all related litigations and disputes upon fulfilling the settlement terms.
The agreement will result in a significant saving for the airline as it navigates a robust path toward long-term growth. SpiceJet’s settlement with Genesis aims to highlight its focus on financial stability, operational resilience, and reducing legal liabilities.
“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,” said Ajay Singh, Chairman and Managing Director at SpiceJet.Also read: Swiggy shares jump nearly 2% as JP Morgan initiates coverage, sets Rs 730 target
SpiceJet’s settlement with Genesis marks another milestone in its string of successful agreements with lessors, including Horizon Aviation, Engine Lease Finance Corporation, and Carlyle Aviation.
In September 2024, Carlyle converted $30 million in lease arrears into SpiceJet equity at Rs 100 per share, reflecting growing stakeholder confidence in the airline’s recovery.
This progress was further acknowledged by Acuité Ratings, which recently upgraded SpiceJet’s credit rating by four notches, the company highlighted.
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