SpiceJet shares jump around 4% as airline settles dispute with one more aircraft lessor - Details

Shares of SpiceJet jumped around 4 per cent on Tuesday after the company announced that it has reached settlement terms with aircraft leasing firm Cross Ocean Partners. The counter opened at Rs 62.90 and jumped 3.86 per cent to touch the day's high of Rs 65. The stock has gained after six days of consecutive falls. Last seen, the counter was trading at Rs 64.29. The scrip had closed at Rs 62.58 in the last trading session. 

The shares of SpiceJet, which has a market cap of Rs 4,399 crore, have a 52-week high of Rs 77.50 and a 52-week low of Rs 22.65.

According to an exchange filing, the settlement is expected to result in significant savings for SpiceJet.

"The parties made this joint announcement before the Delhi High Court in the ongoing execution petition being pursued by Cross Ocean Partners. The settlement is expected to result in significant savings for SpiceJet and also put an end to dispute. As part of the arrangement, the airline will also benefit from transfer of airframe and an engine at no additional cost, augmenting its operational capabilities," the airline said in a regulatory filing.

Commenting on the development, Ajay Singh, Chairman and Managing Director, SpiceJet, said that they remain focused on sustaining the positive momentum and creating long-term value for our stakeholders

“We are pleased to have reached a mutually acceptable resolution with Cross Ocean Partners, which will result in significant cost savings for SpiceJet and also cease prolonged expensive litigation. This settlement reinforces our commitment to effectively settle with our partners and strengthen our operational capabilities. We remain focused on sustaining the positive momentum and creating long-term value for our stakeholders," he added.