SpiceJet Shareholders Approve Rs 3,000-Crore Fundraise For Financial, Legal Woes

SpiceJet Ltd.'s shareholders have approved raising up to Rs 3,000 crore through issuance of securities. The funds are proposed to be raised through qualified institutional placement and other options, as per an exchange filing.

The low-cost airline will use the funds to settle multiple woes, including financial challenges, legal battles and grounding of aircraft.

SpiceJet currently faces outstanding liabilities totaling Rs 3,700 crore, owed to lessors, engineering vendors, and suppliers, alongside Rs 650 crore in unpaid statutory dues, as revealed in an investor presentation on Sept. 6.

The airline's operational fleet has drastically decreased from 74 aircraft in 2019 to just 28 in 2024. Additionally, 36 planes remain grounded due to unresolved payments and funding challenges.

Earlier on Sept. 9, the company had announced a financial restructuring plan with Carlyle Aviation, which would reduce the net debt of the company by nearly Rs 336 crore. The current outstanding dues of the company stand at over Rs 4,300 crore.

The low-cost carrier has entered into a term sheet with Carlyle Aviation to restructure certain aircraft lease obligations aggregating to $137.68 million (nearly Rs 1,157 crore) as of June 30, 2024, which upon settlement/waivers, will be adjusted to $97.51 million (nearly Rs 820 crore).

Shares of SpiceJet closed 8% higher at Rs 71.66 apiece on the BSE, compared to a 0.09% decline in the benchmark Sensex.