SpiceJet Gains On Agreeing To Settle All Disputes With Aircraft Lessors
Shares of SpiceJet gained after the company entered into settlement agreement with aircraft lessors.
Shares of SpiceJet ended with gains on Tuesday after the airline agreed to settle all disputes related to aircraft lease agreement with Goshawk Aviation Ltd. and its affiliate leasing entities Wilmington Trust SP Services (Dublin) Ltd., Sabarmati Aviation Pvt. and Falgu Aviation Ltd.
The agreement is related to two Boeing 737 MAX aircraft and one Boeing 737-800 NG aircraft.
The parties have agreed to settlement all disputes related to aircraft lease agreement.
All proceedings, before U.K. court and execution proceedings before the Delhi High Court will be withdrawn.
The dispute pertained to unpaid dues by SpiceJet. Goshawk and its leasing entities had leased three planes to SpiceJet. SpiceJet decided to spin off the assets prompting Goshawk to approach the court to stop the transfer till the lease dues were fully paid.
The move will allow the entry of two more Boeing 737 MAX aircraft into SpiceJet's fleet.
SpiceJet is scheduled to reports its first-quarter earnings on Aug. 22.
Shares of the airline rose over 4.5% in intraday trade before closing with 2% gain, while the benchmark Sensex closed with 0.64% gains.
Of the 10 analysts tracking the company, two maintain 'buy', four suggest 'hold' and four recommend 'sell', according to Bloomberg data. The 12-month consensus price target implies an downside of 40.1%.