SpiceJet Ltd says a $132 million (₹1,108 crore) deal with Babcock & Brown Aircraft Management (BBAM) has been finalized. The settlement is one of the largest financing agreements reached by SpiceJet and is a step towards strengthening the airline’s balance sheet and reducing its total liabilities, the company said in a BSE filing.
Improve financial stability and operational efficiency
SpiceJet Ltd further said that by resolving this major dispute, the company has overcome an important hurdle, which will see improvement in financial stability and operational efficiency. The settlement comes with Horizon Aviation 1, Horizon II Aviation 3 and Horizon III Aviation 2, which are leased under the management of Babcock & Brown Aircraft Management (BBAM). This comes on the heels of SpiceJet’s successful settlement with Engine Lease Finance Corporation (ELFC) on September 24, in which a claim of $16.7 million was settled.
Ajay Singh, Chairman and Managing Director, SpiceJet
Ajay Singh, Chairman and Managing Director, SpiceJet, said, “With the funds raised through our QIP, we are well positioned to focus on growth, increasing our fleet and expanding our service. He further said that every effort will be made to restore its reputation of strong financial position, reliability and customer satisfaction.
With this rally, the airline operator touched a high of ₹67.98 on BSE with a rise of 8.24 per cent. The stock has gained 92.14 percent in the last one year.