20 Dec 2024
This deal will be a part of the $16 million dispute.
To settle a $16 million dispute, the commercial airline leasing company Genesis will acquire a $4 million stake in SpiceJet at ₹100 per share. SpiceJet will pay Genesis $6 million in cash. The total settlement amount of $10 million covers cash and equity components.
Subject to meeting the settlement terms, both parties will withdraw the ongoing litigations related to this matter at the appropriate forums. SpiceJet has settled its aviation disputes in the past two months with Aircastle of Ireland, Wilmington Trust SP Services, and Shannon Engine Support.
For the past two years, Genesis and SpiceJet have been locked in a legal battle over lease payment and financial obligation issues. SpiceJet had leased five aircraft from Genesis Aircraft Services before the payment issues began.
SpiceJet intends to reduce its financial liabilities. Its stock witnessed a 9% growth last month and traded 7% higher on December 19th after the announcement.