Carlyle Aviation Sells 1.42% Stake in SpiceJet

25 Sep 2024 , 06:59 PM

Carlyle Aviation Management, based in Ireland, has divested its 1.42% stake in SpiceJet through open market transactions, as reported in an exchange filing on Wednesday.

The stake sale occurred between September 17 and 23, 2024, with over 1.81 Crore shares sold, allowing Carlyle to retain 2.99 Crore shares in the airline. Carlyle’s stake had increased due to the airline’s ongoing debt-restructuring efforts.

Recently, Carlyle Aviation wrote off $40.17 million in lease arrears, converting $30 million of lease dues into equity at ₹100 per share and another $20 million into compulsorily convertible debentures (CCDs) in SpiceJet’s cargo subsidiary, SpiceXpress & Logistics.

This strategy of converting lease payments into equity has been ongoing in August 2023, Carlyle adjusted outstanding dues of $28 million for a 5.9% stake in SpiceJet.

SpiceJet successfully raised ₹3,000 Crore through a qualified institutional placement (QIP), providing essential support for the airline’s operations.

The company plans to use the QIP proceeds to tackle liabilities, restructure agreements with lessors, and expand its fleet by reactivating grounded aircraft and acquiring new planes.