SpiceJet shares fly 3% after Aircastle withdraws insolvency case amid settlement

Spicejet shares are up 15 percent this week.

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26 Aug, 2025 12:21

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Shares of SpiceJet rose 3 percent on November 28 after Ireland-based aircraft lessor Aircastle withdrew its insolvency case against the low-cost carrier before the National Company Law Tribunal (NCLT). "This follows a mutually agreed-upon settlement, marking a positive turn in the airline's efforts to rebuild and strengthen ties with its partners," SpiceJet said in an exchange filing.

Last month, SpiceJet resolved a $23.39 million dispute with Aircastle and Dublin-based Wilmington Trust SP Services. The settlement was finalized for a total of $5 million, along with an agreement on the handling of specific aircraft engines. Both parties chose amicable negotiations, effectively sidestepping lengthy courtroom battles.

At 10.10 am, shares of SpiceJet were trading at Rs 62.90 on the NSE. With this, the stock has delivered around 15 percent gains in the past week.

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As part of the settlement, all ongoing litigations and disputes between SpiceJet and the involved parties have been withdrawn from the respective forums.

This development represents another major step forward for SpiceJet, which has been steadily resolving disputes with various partners, including aircraft lessors. Previously, the airline also amicably settled its dispute with lessors under Babcock & Brown Aircraft Management (BBAM) for $22.5 million. The settlement amount was a notable reduction from the original claim of $131.85 million, the company had stated in an earlier exchange filing.

It also settled a $90.8 million dispute with Export Development Canada earlier this month for $22.5 million, which enable to take back the ownership of 13 Q400 planes.

The airline’s recent successful Rs 3,000 crore Qualified Institutional Placement (QIP) has provided a crucial financial boost, enabling it to address such issues and fortify its operations, the company said. In addition to the capital raised through the QIP, SpiceJet is poised to receive Rs 736 crore from a previous funding round.

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