SpiceJet has repaid a ₹100 crore loan to City Union Bank as the firm looks to strengthen its balance sheet amid the airline’s struggles with debt and a grounded fleet. The budget carrier’s shares shot up more than 2% on the news.
What Happened? The airline said it paid the lender the final ₹25 crore tranche on June 30, closing the entire loan account that originated in 2012.
Last month, SpiceJet negotiated a settlement with aircraft lessor Nordic Aviation Capital (NAC) in relation to the liabilities associated with its Q400 aircraft. The airline is set to reintroduce three additional Q400 aircraft from NAC back into its fleet that had previously been repossessed by the lessor.
In June, SpiceJet had also inked a deal with US-based FTAI Aviation to lease engines to revive around 25 grounded aircraft.
SpiceJet had preciously rubbished speculation that the firm was dangerously close to insolvency after competitor Go First was awarded bankruptcy protection in May. SpiceJet also said it was in active talks with investors to raise funds.
Price Action: Shares of SpiceJet jumped 2.17% to ₹27.84 in afternoon trade Monday. However, the stock has lost more than a quarter of its value so far this year.
Don't miss a beat on the share market. Get real-time updates on top stock movers and trading ideas on Benzinga India Telegram channel.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.