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SpiceJet Successfully Repays Rs 100 Crore Loan, Settles Obligations with Nordic Aviation Capital.
On Monday, SpiceJet Ltd. shares rose 13% to Rs 30.9 a share after the low-cost carrier announced that it had successfully settled the payment of Rs 100 crore to City Union Bank.
The loan account that was taken out in the year 2012 was successfully closed on June 30, 2023, the airline stated in a stock market report. "The last tranche of Rs 25 crore was paid."
On June 21, the carrier and Nordic Aviation Capital, a significant lessor of its Q400 aircraft, agreed to a settlement agreement. The settlement deal between the Indian low-cost carrier and Nordic Aviation Capital, according to a report from Reuters, resolves all previous obligations for the Q400s that NAC leased to SpiceJet.
"All securities pledged with the bank are released upon repayment of the loan amount," it continued.
Notably, the payment to City Union Bank was made after an effective resolution was reached with Nordic Aviation Capital (NAC), a significant lessor of SpiceJet's Q400 aircraft.
"The agreement with NAC settles all past obligations for the Q400s leased by NAC to SpiceJet and opens the door for the return and induction of three additional aircraft into the SpiceJet fleet," the airline noted.
In addition, SpiceJet stated that while the airline rebuilds its fleet and its operations, it is still dedicated to reaching amicable agreements with all of its debtors.
With the loan being repaid, presently about 250 flights per day are offered by SpiceJet to 48 domestic and foreign locations. A variety of aircraft, including Boeing 737 Max, Boeing 700, and Q400s, are in its fleet.
(The news is in consideration with Business Today)
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