Budget airline operator SpiceJet is reportedly selling 5 per cent stake to Carlyle Aviation to convert its $100 million debt into 5 per cent equity, CNBC TV18 reported. The Ajay Singh-led airline is also in talks with other creditors for the conversion of its debt into equity.
Carlyle Aviation, the largest lessor to SpiceJet, will probably convert its dues into compulsory convertible debentures in SpiceXpress. SpiceXpress’ market value will exceed $1 billion if the SpiceJet board approves debt conversion. Additionally, the conversion will also aid in the reduction of the debt for SpiceJet, the report added.
SpiceJet’s board is scheduled to meet on February 24 to discuss December quarter earnings and the board is also expected to seek approval to raise cash through the issue of equity shares on a preferential basis upon conversion of outstanding liabilities.
Amid the escalating losses, SpiceJet has been looking for a variety of options to raise money. The aviation company reported a net loss of Rs 833 crore in September quarter compared with loss of Rs 570 crore during the same quarter last year. Its loss came in at Rs 789 crore at the end of June quarter.
Last week, Supreme Court ordered SpiceJet to pay Rs 270 crore to its former promoter Kalanithi Maran by encashing a bank guarantee.
SpiceJet shares ended 0.42 per cent lower at Rs 35 a day ahead of its earnings announcement.
