Genesis Steps into SpiceJet Cockpit with ₹133 Crore Stake Deal to Resolve Feud
New Delhi (The Uttam Hindu): SpiceJet has announced an amicable settlement with Genesis, resolving a dispute valued at ₹133 crore (approximately $16 million). As part of the agreement, SpiceJet will pay Genesis ₹50 crore (₹6 million) and allot equity shares worth ₹33 crore (₹4 million) to the lessor at a price of ₹100 per share. This represents a 78% premium to the airline's previous closing price. SpiceJet also confirmed an additional payment of ₹50 crore (₹6 million) as part of the deal.
The settlement comes as SpiceJet battles financial challenges, recently raising ₹3,000 crore through a Qualified Institutional Placement (QIP). The airline has been using these funds to resolve pending disputes with lessors and other stakeholders. Previously, SpiceJet had settled claims with Horizon Aviation, Engine Lease Finance Corporation, Aircastle, Wilmington Trust SP, Shannon Engine Support Ltd, and Export Development Canada.
Following the announcement, SpiceJet's shares jumped 7.91%, trading at ₹60.73 on the BSE at 12:58 PM on Thursday.
### **Settlement of Liabilities**
In addition to settling lessor disputes, SpiceJet has cleared all statutory liabilities, including tax deducted at source (TDS), goods and services tax (GST), and employee salary dues, using internal cash flows. The airline confirmed that payments for provident fund (PF) and TDS obligations have also been fulfilled.
However, SpiceJet continues to face legal scrutiny. Earlier this week, the Delhi High Court issued summons to the CEO and COO after expressing concern over allegations by lessor TWC Aviation. The lessor claimed that SpiceJet had removed parts from aircraft returned to them, despite having returned the engines and airframes. The court heard the contempt petition on December 17, reflecting ongoing challenges for the airline.
