Shares of SpiceJet jumped nearly 4% to hit the day’s high of Rs 34.8 on the BSE on Tuesday, after the airline announced the successful completion of the full payment of $24 million (Rs 200 crore approx.) to Credit Suisse, closing a long-standing liability that dated back to legacy commercial arrangements before the tenure of its current promoter.
The payment fulfils in entirety the terms of a settlement agreement signed between the two parties in May 2022. At that time, Credit Suisse/SR Technics had raised a total claim of $41.77 million, which was later settled for $24 million under a structured payment plan.
With the settlement now completed, SpiceJet has effectively eliminated a long-standing financial overhang, a move that significantly strengthens its balance sheet and underscores its turnaround efforts.
The company said that this closure marks a milestone in its journey to improve financial stability, reinforce investor confidence, and create long-term value for stakeholders.
“The completion of this payment is another important step in our continued efforts to put legacy issues firmly behind us. This settlement not only brings closure to an old liability but also demonstrates our resolve and ability to meet commitments despite a challenging operating environment. SpiceJet today is financially stronger, more resilient, and fully focused on growth and profitability,” said Debojo Maharshi, Chief Business Officer at SpiceJet.
Also read: Damani, Madhu Kela join Ranbir Kapoor to back this smallcap; acquire stake via bulk deals. Shares surge 10%
The airline said that the liability arose before the current promoter took charge of the company. Its resolution underscores SpiceJet’s continued commitment to honouring its financial obligations. Alongside this development, the airline has also been undertaking measures to bolster its financial health, including fundraising initiatives, settlements with key lessors and creditors, and the strategic expansion of its fleet and network.
( Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
The payment fulfils in entirety the terms of a settlement agreement signed between the two parties in May 2022. At that time, Credit Suisse/SR Technics had raised a total claim of $41.77 million, which was later settled for $24 million under a structured payment plan.
With the settlement now completed, SpiceJet has effectively eliminated a long-standing financial overhang, a move that significantly strengthens its balance sheet and underscores its turnaround efforts.
The company said that this closure marks a milestone in its journey to improve financial stability, reinforce investor confidence, and create long-term value for stakeholders.
“The completion of this payment is another important step in our continued efforts to put legacy issues firmly behind us. This settlement not only brings closure to an old liability but also demonstrates our resolve and ability to meet commitments despite a challenging operating environment. SpiceJet today is financially stronger, more resilient, and fully focused on growth and profitability,” said Debojo Maharshi, Chief Business Officer at SpiceJet.
Also read: Damani, Madhu Kela join Ranbir Kapoor to back this smallcap; acquire stake via bulk deals. Shares surge 10%
The airline said that the liability arose before the current promoter took charge of the company. Its resolution underscores SpiceJet’s continued commitment to honouring its financial obligations. Alongside this development, the airline has also been undertaking measures to bolster its financial health, including fundraising initiatives, settlements with key lessors and creditors, and the strategic expansion of its fleet and network.
( Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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