Indian low-cost carrier SpiceJet announced a crucial liquidity boost on Thursday, leading to a 5.3% gain in the stock price.
SpiceJet announced the finalization of a settlement with Carlyle Aviation Partners, gaining $79.6 million in cash reserves for aircraft and engine maintenance, and $9.9 million in credits to reduce its lease payments.
This deal strengthens the airline’s ongoing restructuring efforts and provides a much-needed breather for the debt-laden airline.
SpiceJet Restructuring
As part of the broader agreement, Carlyle Aviation Partners and its affiliates will restructure certain lease obligations worth $121.18 million. In addition, SpiceJet will issue equity shares worth $50 million to the lessors.
The settlement also includes a mechanism where, if the lessors realize proceeds above $50 million from the sale of these shares, part of the surplus will be used to offset future lease obligations.
Additionally, the promoter or its nominated assignee will have the right to buy these equity shares once the statutory lock-in period ends.
“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,” said Ajay Singh, Chairman & Managing Director, SpiceJet.
This comes after SpiceJet completed the full payment of $24 million to Credit Suisse earlier this month.
As of March 2025, the airline company had a debt of ₹4,218.51 crore.
Weak Q1 Print
Last week, SpiceJet reported a 42.3% decline in Q1 consolidated total income to ₹12.01 billion, and posted a loss of ₹2.34 billion, compared to a profit of ₹1.58 billion in the same period last year.
Year-to-date, the stock has sunk over 40%.
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