Spicejet Completes Equity Share Allotment To Carlyle Aviation Partners, Lowers Liabilities By USD 50 mn

Domestic carrier SpiceJet on Wednesday said it has completed allotment of equity shares to global aircraft leasing and financing firm Carlyle Aviation Partners in a move that has helped it shave off ₹442.25 crore (USD 50 million) liabilities from its balance sheet, besides providing long-term financial stability.

On September 11, the company announced reaching a settlement with the firm for the restructuring of its certain lease dues to the tune of USD 121.18 million, and said that it would help the carrier secure USD 89.5 million liquidity and support its ongoing restructuring efforts.

The settlement agreement with CAP also provides for a mechanism under which, in the event lessors realise proceeds above USD 50-million from the sale of the issued shares, a portion of such excess will be applied to offset future lease obligations, the airline said.

"The Allotment Committee of the Board of Directors, in its meeting held on November 18, approved the issuance of 10,41,72,634 equity shares of face value ₹10 each at an issue price of ₹42.32 per share (including a premium of ₹32.32) on a preferential basis under the non-promoter category," the airline said.

Additionally, the agreement entitles SpiceJet to USD 79.6 million in cash maintenance reserves for future aircraft and engine maintenance, along with USD 9.9 million in cash maintenance credits to offset lease obligations.

"This is an important milestone in our ongoing restructuring efforts and reflects our commitment to building a stronger and financially resilient SpiceJet. 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," said Ajay Singh, Chairman and Managing Director, SpiceJet.

"Several other restructuring initiatives are underway, and we are hopeful of closing them soon as we continue building a stronger, more resilient airline for our customers, partners, and shareholders," he added.

SpiceJet last week reported higher net loss at ₹635.42 crore in September quarter of the current financial year impacted by multiple factors, including foreign exchange loss, additional expenses related to grounded as well as reinducted aircraft and airspace curbs.