Carlyle Aviation, the largest lessor of SpiceJet, is most likely to exchange its $100 million debt for a 5% stake in the carrier. Additionally, Carlyle Aviation is probably going to change its obligations into required convertible notes in SpiceXpress. SpiceXpress will have a value of over $1 billion if the SpiceJet board approves the loan conversion. The change will also aid in debt reduction for SpiceJet.
The company has also discussed the conversion of debt into equity with other debtors.
SpiceJet will request official approval to raise funds through the issue of share capital on a fair basis upon a transformation of outstanding liabilities at its planned meeting today February 24 to discuss profits for the quarter that ended in December. Additionally, it intends to examine options for obtaining new funding by selling eligible shares to accredited institutions.
The Ajay Singh-led limited airline has been exploring different options to collect money in order to survive despite growing losses. It reported a net loss of 833.2 crores for the third quarter that ended in September 2022 as opposed to Rs 570.5 crore for the same period the previous year and Rs 789 crore for the third quarter that ended in June.
The board of SpiceJet is set to convene on February 24 to review the company’s financial results for the December quarter. The board also plans to ask for approval to raise money through the preferential issue of equity shares in exchange for the conversion of liabilities.
SpiceJet has been searching for a number of ways to raise money despite the growing losses. In comparison with the same period last year, the aviation company recorded a net loss of rupees 833 crores in the third quarter. It reported a deficit of Rs 789 crore at the end of the June quarter.
