SpiceJet Board Approves Settlement Of Lease Obligations With Carlyle

SpiceJet Board approved the restructuring and settlement of aircraft lease obligations with Carlyle Aviation. As part of the settlement agreement, the aircraft carrier had announced last year that Carlyle Aviation will write off $40.17 million in lease arrears.

The carrier entered into an agreement with Carlyle Aviation Management to restructure certain aircraft lease obligations of about $137.68 million, which upon settlement or waivers will be adjusted to $97.51 million.

SpiceJet had said last year that it will issue shares worth $30 million to Carlyle, and also transfer $20 million worth of compulsorily converted debentures of SpiceXpress, a separate airline cargo company owned by the carrier.

This deal is expected to bring considerable relief to SpiceJet’s balance sheet by reducing liabilities. Furthermore, it involves a review and potential revision of the current lease terms, including aspects like aircraft redelivery, grounded fleet revival, maintenance reserves, and engine overhaul planning. These updates are aimed at improving the operational efficiency of the airline’s fleet.