SpiceJet announced on Thursday that it has finalized a settlement with Carlyle Aviation Partners, unlocking $89.5 million to strengthen its finances. The deal includes $79.6 million in cash maintenance reserves for aircraft and engine upkeep, along with $9.9 million in maintenance credits to offset lease obligations.

Key Highlights

• SpiceJet secures $89.5 million settlement with Carlyle Aviation, boosting liquidity and easing lease obligations significantly.
• Despite financial struggles and grounded fleet, SpiceJet plans expansion with 10 Boeing 737s this winter.

The settlement forms part of a broader restructuring agreement worth $121.18 million, involving lease obligation restructuring and the issuance of $50 million in equity shares. A provision also allows for excess proceeds from the sale of these shares, above $50 million, to be applied toward reducing future lease dues.

Promoter Ajay Singh emphasized that the agreement reduces liabilities, enhances liquidity, and reflects Carlyle’s confidence in SpiceJet’s long-term prospects.

Shares of SpiceJet rose 3.84% to ₹34.33 on the BSE following the announcement.

The airline continues to face operational and financial challenges, with more than half its 54-aircraft fleet grounded, leaving just 21 in service. Despite raising ₹3,000 crore last year, expansion plans have been delayed due to supply chain issues and cautious lessors. As of June-end, SpiceJet held ₹333 crore in free cash, much of it directed toward statutory dues.

Also Read: SpiceJet CMD Ajay Singh to Inject Rs 294 Crore into Airline through Another Entity 

Recently, the carrier settled $24 million with Credit Suisse and is now preparing to add 10 Boeing 737 aircraft on short-term leases for the winter season, with further fleet expansion discussions underway.