Under the agreement’s terms, SpiceJet will acquire full ownership of 13 EDC-financed Q400 aircraft, bolstering the airline’s operational capabilities and fleet management.
The shares of SpiceJet surged as much as Rs 3.3 or 5.5 per cent, to Rs 62 apiece on BSE after the company informed exchanges that it had reached a settlement with Export Development Canada (EDC), Canada’s export credit agency, to resolve liabilities worth $90.8 million (Rs 755 crore).
According to the exchange filing, the settlement will generate savings of $68.3 million (INR 567 Crore) for SpiceJet.
“SpiceJet and Export Development Canada (EDC) have signed a settlement agreement, the terms of which will allow the airline to clear major liabilities, leading to a comprehensive revitalization of its balance sheet. This settlement marks the biggest breakthrough in SpiceJet’s financial restructuring efforts to date,” the company said in the exchange filing.
Under the agreement’s terms, SpiceJet will acquire full ownership of 13 EDC-financed Q400 aircraft, bolstering the airline’s operational capabilities and fleet management. This pivotal agreement marks a significant milestone in SpiceJet’s pursuit of financial stability, demonstrating its commitment to prudent financial management and long-term prosperity.
Ajay Singh, Chairman and Managing Director of SpiceJet, said, “We are pleased to have reached this settlement agreement with EDC and we thank their leadership and management team for their cooperation, understanding and progressive approachthrough the process. This significant milestone will allow us to strengthen our balance sheet and position the airline for long-term success.”