SpiceJet Ltd. said on Tuesday that it has agreed to a restructuring settlement with Carlyle Aviation, which will involve writing off $40.17 million, or approximately Rs 337 crore, in lease arrears.
Under the restructuring plan, Carlyle Aviation will convert $30 million, or around Rs 250 crore, of SpiceJet's lease arrears into equity at Rs 100 per share, significantly increasing its stake in the low-cost carrier, the troubled Indian airline said in an exchange filing. Additionally, the lessor will convert $20 million, or nearly Rs 170 crore, of lease arrears into compulsorily convertible debentures of SpiceXpress & Logistics Pvt.
"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," the airline said.
The overall restructuring by Carlyle Aviation totalled to $90.17 million, or nearly Rs 760 crore, the company said. The airline had entered into a term sheet with Carlyle Aviation to restructure aircraft lease obligations amounting to $137.68 million, or nearly Rs 1,157 crore, as of June 30, 2024. This amount will be adjusted to $97.51 million, or nearly Rs 820 crore, upon settlement or waivers, as mentioned in a filing dated Sept. 6.
SpiceJet's total outstanding debt exceeds Rs 4,300 crore, which includes Rs 3,700 crore in dues to lessors and engineering liabilities, in addition to statutory dues of Rs 650 crore, according to the company's investors' presentation released last week.
The airline also plans to raise Rs 2,500 crore through a qualified institutional placement and has already received board approval to raise up to Rs 3,000 crore through QIP. It aims to further raise up to Rs 736 crore through the issuance of warrants to promoters.
Shares of SpiceJet rose 1.3% to Rs 64.85 apiece on Bombay Stock Exchange as of 3:07 pm. That compared with 0.37% gains in the country's benchmark BSE Sensex.
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