Cash-strapped domestic carrier SpiceJet on Tuesday announced a major debt restructuring deal with Carlyle Aviation Management, as part of which, Carlyle Aviation will write off $40.17 million in lease arrears and convert $30 million of its arrears into equity.
In a statement, SpiceJet said, “Carlyle Aviation will convert $30 million in lease arrears into SpiceJet equity at Rs 100 per share, significantly increasing its stake in the airline.” Further, it will convert another $20 million in lease arrears into compulsorily convertible debentures (CCDs) of SpiceXpress & Logistics Private Limited, SpiceJet’s cargo arm.
“This strategic partnership between SpiceJet and Carlyle Aviation will bolster SpiceJet’s financial position, accelerate its growth plans, and enhance its ability to compete in the Indian aviation market,” it said.
SpiceJet has been undergoing various restructuring efforts to mitigate its financial challenges. As of June 2024 quarter, SpiceJet had lease obligations worth $137.68 million and it will now be reduced to $97.51 million post-settlement.