Genesis Leasing will take a stake in SpiceJet (SG, Delhi International) as a part of the two parties' settlement of a USD16 million lease dispute, according to the airline's December 19, 2024 statement. Under the terms of the deal, SpiceJet will also pay Genesis USD4 million.
The lessor will pay INR100 rupees (USD1.2) per share, almost double the current trading price at the Bombay Stock Exchange. On December 29, the airline's shares traded at INR56.5. The deal will give the lessor a 0.43% stake in the airline.
As previously reported by ch-aviation, SpiceJet has been chasing a settlement with Genesis special purpose vehicle GASL Ireland Leasing A 1 Limited. The lessor was using the Delhi High Court to try to enforce a UK High Court judgement against the airline concerning a B737-800, then registered as VT-SLI (msn 29670), leased to SpiceJet in May 2017 that the carrier later defaulted on. In mid-2024, GASL lawyers asked the Indian court to order SpiceJet to supply a list of its assets, including moveable and immovable property.
Property still intact, SpiceJet's managing director Ajay Singh said last week's settlement will help move the airline further towards financial stability. "We are pleased to have resolved this matter amicably with Genesis through constructive negotiations," he said. "This agreement, which includes Genesis acquiring an equity stake in SpiceJet, will significantly reduce our financial liabilities and further strengthen our balance sheet.”
The filing added that both parties had agreed to withdraw all ongoing litigation and disputes related to this matter. It follows SpiceJet recently negotiating settlements with several lessors, including Horizon Aircraft Finance, Engine Lease Finance Corporation, Aircastle, Wilmington Trust SP Services (Dublin), Shannon Engine Support Limited, and Export Development Canada. However, a number of matters remain active before the Indian courts.
