Shares of SpiceJet Ltd. dropped 3% after reaching a day’s high of Rs 70.40 on 24th September, following the company’s statement that it has resolved its dispute with Engine Lease Finance Corporation (ELFC) through an amicable settlement of a $16.7 million claim.

Engine Lease Finance Corporation (ELFC), which originally sought $16.7 million, has reached a settlement for an undisclosed amount that is lower than the initial claim, as stated by SpiceJet.

Ajay Singh, Chairman and MD of SpiceJet, mentioned that the settlement with ELFC, which is beneficial for both parties, addresses previous issues and enhances the company’s standing as it embarks on a new phase of growth and expansion.

The company stated that representatives from both parties will formalise the settlement agreement, aiming to withdraw all ongoing litigation and resolve disputes. They noted that this settlement is a significant step in its efforts to streamline operations and focus on future growth.

ELFC had lodged an insolvency plea before NCLT in May this year against SpiceJet for not paying over $12 million to it. ELFC had leased eight engines with SpiceJet and sought a total amount of around $16 million, with interest and rental.

The company has successfully raised Rs 3,000 crore through its recently concluded Qualified Institutional Placement (QIP), which was significantly oversubscribed by investors.

They noted that the QIP attracted a diverse group of top-tier institutional investors and mutual funds, demonstrating confidence in the firm’s ability to overcome industry challenges and leverage growing demand in the aviation sector.

At 1:02 PM, the shares of SpiceJet were trading 3.81% lower at Rs 67.60 on BSE.

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