Settlement with CAP to help secure USD 89.5 mn liquidity: Spicejet

Mumbai, Sep 11 (PTI) Domestic carrier SpiceJet on Thursday said its settlement with global aircraft leasing and financing firm Carlyle Aviation Partners (CAP) for the restructuring of the airline's certain lease dues to the tune of USD 121.18 million will help it secure USD 89.5 million liquidity and support its ongoing restructuring efforts.

The settlement agreement with CAP also provides for a mechanism under which, in the event lessors realise proceeds above USD 50-million from the sale of the issued shares, a portion of such excess will be applied to offset future lease obligations, the airline said.

The agreement unlocks USD 79.6 million in cash maintenance reserves and USD 9.9 million in credits, SpiceJet said in a statement.

The settlement is in conjunction with the issuance of equity shares aggregating to USD 50 million, SpiceJet said in a statement.

Significantly, this comes amid the Gurugram-headquartered airline providing Rs 32 crore as an interest-free advance to its Chairman and Managing Director Ajay Singh in 2024-25, and the amount is being adjusted from his monthly salary.

The Gurugram-based airline, which posted a consolidated loss of Rs 238 crore in the June quarter this fiscal, however, termed the move as "not prejudicial to its interest." The airline in the statement also said that the promoter (or its designated assignee) will have the option/opportunity to purchase such Equity Shares on mutually agreed terms upon the expiry of the statutory lock-in period and any additional lock-in period contractually agreed between the parties.

These liquidity enhancements are part of overall settlement agreement with Carlyle Aviation Partners and its affiliated entities, under which the Lessors shall restructure certain lease obligations totalling USD 121.18 million in conjunction with the issuance of equity shares aggregating to USD 50 million. PTI IAS MR MR