Budget carrier SpiceJet has successfully resolved a long standing dispute with Engine Lease Finance Corporation (ELFC), paving the way for future growth.

“We have reached a mutually beneficial settlement with ELFC, which enables us to move forward with a clean slate,” said Ajay Singh, chairman and managing director of SpiceJet. The terms of the settlement were not disclosed.

ELFC, which had previously claimed $16.7 million, has agreed to settle for an undisclosed amount, which is lower than the initial claim, the airline said in a statement.

The airline, however, did not disclose the final settlement amount with ELFC.

The representatives of both parties will now formalise the settlement agreement to withdraw all ongoing litigation and end disputes between them, SpiceJet said.

In addition to the dispute resolution, SpiceJet has raised ₹3,000 crore through a qualified institutional placement (QIP). The QIP attracted a diverse pool of top-tier institutional investors and mutual funds, including Goldman Sachs (Singapore), Morgan Stanley Asia, BNP Paribas Financial Markets ODI, Nomura Singapore ODI, Tata Mutual Fund, Discovery Global Opportunity Ltd.

SpiceJet will also receive an additional ₹736 crore from a previous funding round.

The fundraising demonstrates strong investor confidence in the airline’s ability to navigate industry challenges and capitalise on the growing demand for air travel in India.

The funds will be used to settle past liabilities, expand operations and enhance SpiceJet’s fleet and services, positioning the airline for robust future growth.

SpiceJet has been facing financial pressures in recent years, but the settlement and successful fundraising are steps towards a more stable financial footing.