SpiceJet said on Thursday aircraft lessor Genesis will acquire a $4-million stake in the airline as part of a settlement of a dispute exceeding $16 million. The airline will also pay Genesis $6 million under the agreement.

The settlement, which follows SpiceJet’s recent efforts to raise ₹3,000 crore amid financial challenges, forms part of the airline’s broader strategy to resolve disputes with lessors and other stakeholders.

As part of the settlement terms, both parties have agreed to withdraw all ongoing litigations related to the dispute, subject to the agreement’s conditions being met.

In a statement, SpiceJet confirmed it had reached an amicable resolution with Genesis, which includes the payment of $6 million by the airline and the acquisition of $4 million in equity at ₹100 per share.

This move follows an earlier settlement with Carlyle Aviation, which in September agreed to convert $30 million in lease arrears into SpiceJet equity, also at ₹100 per share. The airline has previously resolved disputes with several other lessors.

SpiceJet's CMD Ajay Singh, called the settlement a significant step towards financial stability, noting that it would reduce liabilities and strengthen the airline's balance sheet.