SpiceJet’s shares jumped as much as 6% after the announcement. (Representational)
SpiceJet said on Tuesday that Carlyle Group’s commercial aviation investment and servicing unit will write off $40.2 million of the airline’s lease arrears and convert $30 million of its arrears into equity.
The conversion, at 100 rupees ($1.19) per share of SpiceJet, is a 56% premium to its close on Monday.
The budget carrier’s shares jumped as much as 6% after the announcement.
The write-off comes days after the airline said it will convert dues to Carlyle Aviation into equity and debentures. The airline has been struggling to fully restore operations despite multiple fundraises over the last year, trailing rivals IndiGo and Tata-owned Air India in terms of market share.
The conversion will “significantly” increase Carlyle Aviation’s stake in the carrier, SpiceJet said.
Carlyle Aviation currently holds a nearly 6% stake in SpiceJet, the latter said in a response to a Reuters inquiry. The airline did not disclose the stake Carlyle Aviation will hold post-conversion.
Late last month, the country’s aviation watchdog placed SpiceJet under enhanced surveillance after a recent audit revealed “certain deficiencies”.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
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