SpiceJet repays Rs 100 cr loan to City Union Bank, frees pledged collaterals

SpiceJet Airlines

NEW DELHI: SpiceJet on Monday said it has successfully completed the settlement of a loan payment worth 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 2012, the airline company said in a release.
“The repayment of the loan amount releases all securities that had been pledged with the bank,” it added.

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

The agreement with NAC settled all past liabilities for the Q400s leased by NAC to SpiceJet. It will pave the way for the return and induction of three additional planes into the SpiceJet fleet.

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

SpiceJet operates about 250 daily flights to 48 destinations within India and to international destinations. Its fleet is a mix of aircraft including Boeing 737 Max, Boeing 700 and Q400s.

SpiceJet was launched in May 2005. (ANI)

Also Read: SpiceJet finalises settlement with lessor NAC for Q400 aircraft