SpiceJet settles Rs 755 crore dues with Canadian agency

Mumbai, March 26

SpiceJet on Tuesday said it had signed a pact with Export Development Canada (EDC) to settle liabilities worth $90.8 million (Rs 755 crore). The liabilities stem from a loan acquired by the airline in 2011 for the procurement of 15 aircraft.

The terms of the settlement pact will allow the airline to clear major liabilities, leading to a comprehensive revitalisation of the airline’s balance sheet, SpiceJet said in a statement. Under the agreement, SpiceJet will acquire full ownership of 13 EDC-financed Q400 aircraft, bolstering the airline’s operational capabilities and fleet management, it said.

SpiceJet said the settlement will lead to savings worth $68.3 million (Rs 567 crore) for SpiceJet, it said.