SpiceJet repays Rs 100 crore loan to City Union Bank

New Delhi: Embattled airline SpiceJet on Monday said it has repaid the Rs 100 crore-loan taken from the City Union Bank and the payment of the last tranche of Rs 25 crore was done in June.

"The repayment of the loan amount releases all securities that had been pledged with the bank," the no-frills airline said in a statement.

In recent times, the airline has been facing multiple headwinds, including petitions for insolvency proceedings against it and in some cases, lessors taking back leased aircraft.

According to the carrier, 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, "successfully closing the entire loan account which was taken in the year 2012", it added.

Earlier, the airline had reached a settlement agreement with Nordic Aviation Capital (NAC), a major lessor for its Q400 aircraft.

"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 statement said.

Shares of SpiceJet jumped 12.44 percent to close at Rs 30.64 on BSE.

On June 9, SpiceJet said it plans to add 10 narrow-body Boeing aircraft, including five B737 Max, on lease by October.

(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Google News. Click here to follow. Also, join PSU Watch Channel in your Telegram. You may also follow us on Twitter here and stay updated.)