SpiceJet Secures Lifeline: USD 89.5 Million Liquidity Boost from Carlyle Aviation Deal
SpiceJet has reached a settlement with Carlyle Aviation Partners to restructure USD 121.18 million in lease dues, securing USD 89.5 million in liquidity. The agreement unlocks cash and credits, while equity shares aggregating USD 50 million are issued. This strategic move supports SpiceJet's ongoing restructuring efforts.
- Country:
- India
Domestic carrier SpiceJet announced a significant agreement with Carlyle Aviation Partners, restructuring lease dues totaling USD 121.18 million, while gaining USD 89.5 million in liquidity.
The deal involves unlocking USD 79.6 million in cash maintenance reserves and USD 9.9 million in credits, accompanied by an issuance of equity shares valued at USD 50 million. Crucially, proceeds above USD 50 million from the sale of issued shares may offset future lease obligations.
This settlement forms a critical component of SpiceJet's restructuring strategy as the airline, amid financial challenges, recorded a Rs 238 crore loss in the June quarter. The advance provided to Chairman Ajay Singh is being adjusted against his salary, with optional equity purchase terms upon expiry of the lock-in period.
(With inputs from agencies.)
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