Earlier, Indian Low-cost airline SpiceJet had proposed to settle the dues of aircraft leasing companies by turning them into potential investors from aggressive creditors , according to sources.
The plan also involved a two-step transaction to clear outstanding dues worth ₹2,500 crore, if the lessors agreed to the proposal.
Now , it's being learnt that the Low-cost carrier is likely to sell a 5% stake in the airline to its largest lessor US-based Carlyle Aviation Partners.
To infuse fresh funds, the airline had been in discussions with strategic investors since last year for a stake sale in a post pandemic recovery struggle.
As per the proposal , the company was to first transfer its cargo arm to a newly created subsidiary. The unit, SpiceXpress, will then issue compulsorily convertible debentures (CCDs) to the parent. Then, SpiceJet will offer lessors the option to swap lease payments with the CCDs.
If everything works well as per the proposed deal, Carlyle is expected to convert over $100 million of outstanding dues into equity in SpiceJet and CCDs in the SpiceXpress.
SpicejJet , that had a rough 2022 due to a combination of issues that include "employee dissatisfaction" and "Aviation regulator DGCA surveillance notices" , has been trying to turn around under the leadership of Ajay Singh.
Though Funding has been the major issue for the company , the proposed deal is going to see the worth of carrier's logistics arm SpiceXpress at over $1 billion in deal with Carlyle.
Being optimistc, the deal might prove to be silverline and is expected to result in major reduction in debt , that will again help SpiceJet to reinforce its balance sheet for future growth.
Miami based Carlyle Aviation Partners is the commercial aviation investment and aircraft (parts) management arm of Carlyle's Global Credit platform , that maintains an aviation investment management porfolio of $11.5 billion.
Meanwhile, Spicejet chief Ajay Singh has been maintaining the statement that the company has completed a series of settlements with most of the major partners, including Aircraft manufacturers and lessors.
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