Spicejet jumped 4.72% to Rs 64.36 after the company has entered into a term sheet with Carlyle Aviation Management (CAML) to restructure certain aircraft lease obligations of SpiceJet aggregating to $137.68 million as on 30 June 2024.
After settlement /waivers, the amount will reduce to $97.51 million owed to various lessor entities managed by CAML or its affiliates.The company will issue such number of equity shares at a price of Rs 100 per share, subject to an aggregate amount of not more than $30 million. Lessors will also consider purchasing, via the exchange of lease arrears, compulsorily convertible debentures (CCDs) of SpiceXpress & Logistics (a subsidiary of the company) in a principal amount of $20 million, ranking senior to all other existing and future equity or equity-linked securities of SpiceXpress.
In connection with the satisfaction of the accrued but unpaid lease payment(s) and other obligations of SpiceJet after adjustment of various waivers/credits to be given by Lessors, that includes amongst others, late interest, engine shortfalls, rent and maintenance on grounded aircraft, it is agreed that SpiceJet will issue equity shares and also transfer CCDs to the Lessors.
SpiceJet is a low-budget air carrier. The airline operates a fleet of Boeing 737s, Q-400s & freighters and is the country's largest regional player operating 63 daily flights under UDAN or the Regional Connectivity Scheme. The airline also operates a dedicated air cargo service under the brand name SpiceXpress offering cargo connectivity across India and on international routes.
The low-cost air carrier standalone net profit declined 26.69% to Rs 149.96 crore on 15.3% fall in revenue from operations to Rs 1,695.52 crore in Q1 FY25 over Q1 FY24.
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