SpiceJet (SG, Delhi International) has closed an INR1 billion rupee (USD12.2 million) loan taken out in 2012 with the Kumbakonam-headquartered City Union Bank. In a statement, the airline said it made its final INR250 million (USD3 million) repayment on June 30. The bank also confirmed the loan was finalised.

"The repayment of the loan amount releases all securities that had been pledged with the bank," the statement read. SpiceJet had pledged 20 million shares as collateral.

India's Business Standard outlet reports that the bank had placed the airline's loan on a watchlist in early 2022, classifying it as special mention account-1 (SMA1). SMAs are loan accounts that have the potential to become delinquent. There are four categories, with SMA1 status indicating repayments are overdue between 30 and 60 days. While disputing the classification at the time, SpiceJet came to an agreement with the bank in August 2022, when INR300 million (USD3.7 million) remained outstanding, to close the loan by June 2023.

“It was not a bad loan as they have been paying the loan amount regularly along with interest as per the schedule, and they have fulfilled their promises,” a bank spokesperson told local media outlets. The markets welcomed the repayment, with SpiceJet shares jumping 12% on an afternoon's trading on July 3.

SpiceJet has negotiated a series of financial problems this year, including lessors attempting to push it into insolvency and repossessing their planes. The airline recently settled with Nordic Aviation Capital (NAC), closing a protracted lease dispute and paving the way for the return of aircraft. Repeating a previous statement, SpiceJet said this week that it "remains committed to finding amicable settlements with all its creditors as the airline builds back its fleet and its business."

Meanwhile, SpiceJet has delayed the release of its financial results for the 12 months to March 31, 2023, saying a member of its audit committee was medically incapacitated. It anticipates releasing the data "in the coming weeks." SpiceJet has experienced accumulated losses totalling INR40.13 billion (USD489.8 million) since FY2019, in addition to losses of INR15.07 billion (USD183.9 million) for the nine months to December 31, 2022.