NEW DELHI: Low-cost carrier SpiceJet Ltd has reached a settlement with Carlyle Aviation Partners, unlocking $89.5 million in liquidity that will support the airline’s restructuring and balance sheet strengthening efforts.
As part of the agreement, the airline will gain access to $79.6 million in cash maintenance reserves for future aircraft and engine maintenance, along with $9.9 million in maintenance credits to offset lease obligations, SpiceJet said in a regulatory filing on Thursday.
The deal also involves restructuring of certain lease obligations worth $121.18 million, combined with the issuance of equity shares aggregating $50 million. Additionally, if Carlyle realizes proceeds above $50 million from the sale of these shares, a portion of the excess will be used to offset SpiceJet’s future lease obligations.
Promoter Ajay Singh, or his designated assignee, will have the option to purchase these equity shares once the statutory and contractual lock-in periods expire.
Ajay Singh, Chairman and Managing Director of SpiceJet, called the settlement a “significant milestone” in the airline’s turnaround. “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,” he said.
The airline said the settlement underlines its focus on strategic restructuring, cost efficiency, and forging long-term partnerships with stakeholders.
SpiceJet operates a fleet of Boeing 737s and Q400s and is a major participant in the government’s UDAN regional connectivity scheme.