Lessors shall restructure certain lease obligations totalling $121.18 million in conjunction with the issuance of equity shares aggregating to $50 million.

Budget airline SpiceJet on Thursday reported that it has reached a settlement with aircraft lessor Carlyle Aviation Partners.

Accordingly, the settlement unlocks $79.6 million in cash maintenance reserves for future aircraft and engine maintenance, said SpiceJet.

Besides, the airline has received another $9.9 million in cash maintenance credits to offset its lease obligations.

As per SpiceJet, these liquidity enhancements are part of an overall settlement agreement with Carlyle Aviation Partners and its affiliated entities.

Notably, under the settlement, the lessors shall restructure certain lease obligations totalling $121.18 million in conjunction with the issuance of equity shares aggregating to $50 million.

Furthermore, SpiceJet said that the settlement agreement also provides for a mechanism under which, in the event lessors realise proceeds above $50 million from the sale of the issued shares, a portion of such excess will be applied to offset future lease obligations.

“The promoter (or its designated assignee) will have the option or 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,” the airline said in a statement.

According to Ajay Singh, Chairman & Managing Director, SpiceJet, the agreement marked a significant milestone in our ongoing restructuring and ungrounding efforts.

“The support extended by Carlyle demonstrates their confidence in SpiceJet’s long‐term prospects,” Singh was quoted as saying in the statement.

“This transaction meaningfully reduces our liabilities, strengthens our balance sheet, and positions us well for sustainable growth.”

Published on September 11, 2025