Gurugram: SpiceJet Limited has announced a major financial breakthrough through a settlement agreement with Carlyle Aviation Partners and its affiliated entities, unlocking a total of $89.5 million in liquidity. The deal includes $79.6 million in cash maintenance reserves earmarked for future aircraft and engine upkeep, along with $9.9 million in cash maintenance credits to offset lease obligations. This strategic agreement significantly strengthens SpiceJet’s financial position and supports its ongoing restructuring and fleet un-grounding efforts.
As part of the broader settlement, Carlyle Aviation Partners will restructure lease obligations totaling $121.18 million. In conjunction, SpiceJet will issue equity shares aggregating to $50 million. The agreement also includes a mechanism whereby any proceeds exceeding $50 million from the sale of these shares will be used to offset future lease payments. Additionally, the promoter or a designated assignee will have the opportunity to purchase the equity shares on mutually agreed terms following the expiry of the statutory and contractual lock-in periods.
Ajay Singh, Chairman and Managing Director of SpiceJet, stated: “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.”
The settlement underscores SpiceJet’s commitment to strategic restructuring, operational efficiency, and long-term stakeholder partnerships. As the airline charts its next phase of growth, the infusion of liquidity and reduction in liabilities are expected to enhance its financial resilience and operational readiness.
