Please find attached disclosure in relation to restructuring and settlement with Carlyle Aviation Management Limited
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SpiceJet has signed a term sheet with Carlyle Aviation Management to restructure aircraft lease arrears worth about US$ 121.18 million (as of March 31, 2025). The settlement will be done mainly by issuing fresh equity shares worth around US$ 50 million at Rs 65 per share to Carlyle's affiliated lessors, subject to shareholder and other approvals. Carlyle's shareholding will be capped below 10% of SpiceJet's equity. The deal also includes a review of existing lease terms covering lease extensions, engine overhauls, maintenance reserves, return of grounded aircraft, and credit lines. The restructuring is intended to clean up SpiceJet's balance sheet by converting lease debt into equity.
This is positive for SpiceJet shareholders as it reduces debt burden and avoids cash outflows, but it will lead to equity dilution for existing shareholders. The conversion of ~$50 million of debt into equity at Rs 65/share signals a cash-strapped balance sheet, and approval from shareholders will be a key milestone to watch.