SpiceJet on September 8 announced that it has completed the full payment of $24 million to Credit Suisse, fulfilling in entirety the terms of the settlement agreement signed between the two parties in May 2022.
The airline in its statement said that this marks the closure of a long-standing liability that pre-dates the tenure of its current promoter. "The successful completion of this payment underscores SpiceJet’s commitment to honouring its financial obligations and its sustained efforts to strengthen its balance sheet, improve financial stability and build long-term value for all stakeholders," it added.
Before the two parties entered into an agreement in May 2022, Credit Suisse had claimed $41.77 million in dues. However, the two settled for $24 million in a structured payment plan as part of the agreement.
"The liability arose before the current promoter took over the airline and was linked to legacy commercial arrangements. With the full settlement now completed, SpiceJet has successfully eliminated a long-standing financial overhang, further reinforcing the company’s turnaround journey," SpiceJet said.
The airline added that it continues to take decisive steps to strengthen its financial position, including successful fund-raising initiatives, settlements with key lessors and creditors, and strategic expansion of its fleet and network.
SpiceJet Chief Business Officer Debojo Maharshi said, "The completion of this payment is another important step in our continued efforts to put legacy issues firmly behind us. This settlement not only brings closure to an old liability but also demonstrates our resolve and ability to meet commitments despite a challenging operating environment. SpiceJet today is financially stronger, more resilient, and fully focused on growth and profitability."
Despite the positive development, SpiceJet shares closed nearly 3 percent lower at Rs 33.45 apiece. Earlier during the day, the stock dropped 5 percent to hit an intraday low of Rs 32.60 apiece. This came after the airline reported a consolidated net loss of Rs 233.85 crore for the first quarter of the financial year 2026, as against a net profit of Rs 158.3 crore in the same period last year.
The company released its results for the April-June quarter in the post market hours of September 5. The airline's revenue from operations meanwhile dropped around 34 percent year-on-year to Rs 1,120.2 crore during Q1 FY26. It had reported revenue from operations at Rs 1,708.2 crore in Q1 FY25.
Elara Capital cut its target price for the stock by more than 37 percent to Rs 39 per share after the release of the results, while maintaining its 'Accumulate' rating. The latest target price implies an upside potential of nearly 13 percent over the previous closing price.
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