SpiceJet allots equity to Carlyle Aviation in $89.5 mn liquidity deal to ease debt burden

SpiceJet has completed its equity share allotment to Carlyle Aviation Partners as part of a broader restructuring effort aimed at strengthening the airline’s long-term financial stability, the company announced on November 19. The development follows a settlement reached in September under which the carrier will gain access to $89.5 million in liquidity.

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At a board meeting held on November 18, the airline approved the issuance of over 100 million equity shares at ₹42.32 per share. This move will reduce SpiceJet’s liabilities by ₹442.25 crore, the airline said in its statement.

SpiceJet’s stock was trading 0.46% higher at ₹36.9 on the BSE on November 19, as per CNBCTV-18 report.

“The removal of liabilities, combined with access to substantial maintenance reserves and credits, provides us with meaningful support as we continue to revive our fleet and expand operations. We appreciate the cooperation of Carlyle Aviation Partners throughout this process,” said Ajay Singh, chairman and managing director of SpiceJet.

The agreement offers $79.6 million in cash maintenance reserves for future aircraft and engine upkeep, along with $9.9 million in maintenance credits to offset lease obligations, the company added.

As part of the settlement mechanism, if the lessor earns proceeds exceeding $50 million from selling the allotted shares, a portion of the surplus will go towards reducing SpiceJet’s future lease obligations, according to the company’s statement.

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Carlyle Aviation Partners is the commercial aviation investment and servicing platform of Carlyle’s Global Credit business, which managed $186 billion in assets as of March 31, 2024.

The share allotment comes as the airline struggles with widening losses. SpiceJet reported a net loss of ₹635.42 crore in the September quarter of FY26, hurt by foreign exchange losses, higher expenses related to grounded and reinducted aircraft, and airspace restrictions. The carrier, which posted a ₹447.54 crore loss in the same quarter last year, expects financial performance to improve in the second half of the current fiscal year.