SpiceJet secures $ 89.5 Million in liquidity boost through Carlyle Settlement

SpiceJet Limited has reached a settlement with Carlyle Aviation Partners, unlocking US $ 79.6 Million in cash maintenance reserves for future aircraft and engine maintenance, plus US $ 9.9 Million in cash maintenance credits to offset its lease obligations. This agreement significantly enhances airline's liquidity and supports its ongoing restructuring efforts.

These liquidity enhancements are part of overall settlement agreement with Carlyle Aviation Partners and its affiliated entities, under which the Lessors shall restructure certain lease obligations totalling US $ 121.18 Million in conjunction with the issuance of equity shares aggregating to US $ 50 Million. The settlement agreement also provides for a mechanism under which, in the event lessors realize proceeds above US $ 50 Million from the sale of the issued shares, a portion of such excess will be applied to offset future lease obligations.

The promoter (or its designated assignee) will have the option/opportunity to purchase such Equity Shares on mutually agreed terms upon the expiry of the statutory lock‐in period and any additional lock‐in period contractually agreed between the Parties.

Ajay Singh, Chairman & Managing Director, SpiceJet, said, "This agreement marks a significant milestone in our ongoing restructuring and un‐grounding efforts. The support extended by Carlyle demonstrates their confidence in SpiceJet's long‐term prospects. This transaction meaningfully reduces our liabilities, strengthens our balance sheet, and positions us well for sustainable growth."

The settlement reflects SpiceJet's continued focus on strategic restructuring, cost efficiency, and long‐term partnerships with stakeholders as it charts its next phase of growth.

Shares of SPICEJET LTD was last trading in BSE at Rs. 33.64 as compared to the previous close of Rs. 33.06. The total number of shares traded during the day was 23207725 in over 27467 trades.

The stock hit an intraday high of Rs. 34.85 and intraday low of 33.00. The net turnover during the day was Rs. 785549620.00.

Source : Equity Bulls

Keywords

SPICEJET INE285B01017 Airlines Settlement CarlyleAviationPartners