SpiceJet repays Rs 100-crore loan to City Union Bank, airline's stock surges 13%

Shares of SpiceJet Ltd on Monday soared 13% at Rs 30.9 apiece after the low-cost airline said that it has successfully completed the settlement of payment of Rs 100 crore to City Union Bank.

"The last tranche of Rs 25 crore was paid on June 30, 2023, successfully closing the entire loan account which was taken in the year 2012," the airline said in a stock exchange filing.

The repayment of the loan releases all securities that had been pledged with the bank.

“The repayment to City Union Bank follows a successful settlement agreement with Nordic Aviation Capital (NAC), a major lessor for SpiceJet’s Q400 aircraft,” said the press release.

“The agreement with NAC settles all past liabilities for the Q400s leased by NAC to SpiceJet and paves the way for the return and induction of three additional planes into the SpiceJet fleet,” the airline added.

SpiceJet also said that it remains committed to finding amicable settlements with all its creditors as the airline builds back its fleet and it business.

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