Genesis Acquires Stake in SpiceJet to Resolve Lease Dispute
Genesis Leasing has agreed to take a 0.43% equity stake in SpiceJet as part of a settlement over a $16 million lease dispute, the airline announced on December 19, 2024. Alongside the equity deal, SpiceJet will pay Genesis $4 million in cash.
Genesis will acquire the stake at ₹100 per share, nearly double the current market value of ₹56.5 on the Bombay Stock Exchange as of December 29, 2024. The agreement resolves a long-standing legal battle over a Boeing 737-800 aircraft, previously leased to SpiceJet and defaulted upon.
The settlement follows litigation in the Delhi High Court, where Genesis sought enforcement of a UK High Court judgment against SpiceJet. Genesis had demanded a list of the airline’s assets to enforce the claim.
SpiceJet’s Managing Director, Ajay Singh, described the agreement as a step toward financial recovery. “This amicable resolution reduces our liabilities and strengthens our balance sheet,” Singh stated. The deal also involves withdrawing all ongoing litigation between the two parties.
This settlement is the latest in a series of negotiations SpiceJet has concluded with lessors, including Horizon Aircraft Finance and Engine Lease Finance Corporation, among others. However, several disputes remain active in Indian courts, reflecting the carrier’s ongoing efforts to stabilize its financial position.
The agreement highlights SpiceJet’s commitment to resolving financial challenges and fostering partnerships with stakeholders to sustain its operations and market presence.
Related News: https://airguide.info/category/air-travel-business/aircraft-finance/
Genesis Acquires Stake in SpiceJet to Resolve Lease Dispute