Domestic airline SpiceJet has settled its Rs 100 crore payment to City Union Bank. The last tranche of Rs 25 crore was paid on June 30, 2023, the low-cost airline informed the exchanges on July 3.
This “successfully closes the entire loan account which was taken in 2012. The repayment of the loan amount releases all securities that had been pledged with the bank,” the statement added.
The repayment to City Union follows an agreement with Nordic Aviation Capital (NAC), a major lessor for SpiceJet’s Q400 aircraft. “The agreement with NAC settles all past liabilities for the Q400s leased by NAC to SpiceJet and paves the way for the return and induction of three additional planes into the SpiceJet fleet,” it added.
“SpiceJet remains committed to finding amicable settlements with all its creditors as the airline builds back its fleet and its business,” the statement said.
The cash-strapped SpiceJet operates Boeing 737s and Q-400s. It also plies regional routes under UDAN.
At 1.54 pm, the share was trading at Rs 27.69 on the National Stock Exchange, up 1.61 percent from the previous close.
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