SpiceJet has completed equity share allotment to Carlyle Aviation Partners as part of its restructuring process to boost the airline’s long-term fiscal stability, the company said on November 19. The low-cost carried in September had announced a settlement with Carlyle Aviation Partners, under which SpiceJet will get access to $89.5 million in liquidity.
The board of the cash-trapped airline approved the issuance of over 100 million equity shares at an issue price of Rs 42.32 per share in a meeting held on November 18. The move will help the airline reduce liabilities of Rs 442.25 crore from its balance sheet, the company said.
The airline stock was trading 0.46 percent higher at Rs 36.9 on BSE at 14:56 pm on November 19.
“The removal of liabilities, combined with access to substantial maintenance reserves and credits, provides us with meaningful support as we continue to revive our fleet and expand operations. We appreciate the cooperation of Carlyle Aviation Partners throughout this process,” said Ajay Singh, chairman and managing director, SpiceJet.
The agreement provides $79.6 million in cash maintenance reserves for future aircraft and engine maintenance. It also allows $9.9 million in cash maintenance credits to offset lease obligations, the company statement said.
“As part of the settlement framework, the agreement incorporates a mechanism under which, should the lessor realize proceeds exceeding $50 million from the sale of the issued shares, a portion of the surplus will be applied towards reducing future lease obligations of the airline,” the company statement added.
Carlyle Aviation Partners is the commercial aviation investment and servicing arm of Carlyle's Global Credit business, which manages $186 billion in assets as of March 31, 2024.
Last week, the airline reported a widening of net loss to Rs 635.42 crore in September quarter FY26 as multiple factors, including foreign exchange loss, additional expenses related to grounded as well as reinducted aircraft and airspace curbs, hit the budget carrier's bottom line.
The airline, which had faced multiple headwinds, had recorded a net loss of Rs 447.54 crore in the year-ago period and expects positive financial performance in the second half of the current financial year.
With agency inputs
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