All of SpiceJet’s outstanding liabilities of 755 crores hanging with Export Development Canada have been resolved. This financial transaction is significant because it marks the end of a long struggle to restructure SpiceJet’s debt and put it on a sound footing for the future.
As part of the agreement, SpiceJet will now gain full ownership of 13 Q400 aircraft previously financed by EDC.
Under the contract, SpiceJet will receive title to 13 Q400 aircraft. That should greatly ease its air cargo service 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,” stated SpiceJet in a press release.
SpiceJet Chairman and Managing Director Ajay Singh, thankful for the cooperation of EDC management throughout this process, said that this deal is essential to fortifying SpiceJet’s balance sheet, leading on from there to long-term success for the company.
The debt settlement originates from a loan procured in 2011 for the acquisition of 15 aircraft, out of which twelve Q400s are currently grounded. With this deal, ownership of 13 EDC-financed aircraft will now transfer to SpiceJet.
“This agreement heralds immense long-term savings for SpiceJet, liberating the airline from the obligation of regular monthly rentals for these aircraft,” a spokesperson remarked.
