SpiceJet share price gains 5% on debt restructuring agreement with Carlyle aviation

Stock Market today: SpiceJet share price gained more than 5% in the morning trades on Monday. The gain for SpiceJet share price was driven by the company has announcing debt Restructuring agreement and Settlement with Carlyle Aviation. The announcement was made post market hours on Friday.

The SpiceJet share price opened at ₹63.65 on the BSE on Monday, 3.56% higher than the previous days closing price of ₹61.46. The SpiceJet share price thereafter gained more than 5% to intraday highs of ₹64.86, marking gains of more than 5%.

The SpiceJet share price has gained almost 60% in last one year or various restructuring announcements.

SpiceJet On Friday had announced that it has made a Restructuring and Settlement with Carlyle Aviation.

Carlyle Aviation plans to purchase SpiceJet shares in order to settle a portion of its outstanding debt, which amounts to $137.68 million. SpiceJet's debt would be reduced to $97.51 million as a result of the restructuring exercise, with $40 million of Carlyle Aviation's debt being converted into equity.

As per the release made by SpiceJet, the company and Carlyle Aviation Management Limited (“CAML”) have entered into a term sheet (“Term Sheet”) to restructure certain aircraft lease obligations of SpiceJet aggregating to $137.68 million (as of June 30, 2024), which upon settlement/waivers will be adjusted to $97.51 million (subject to further adjustments)/. The same are proposed to be restructured through issuance/purchase of securities, subject to compliance with applicable Indian law, approval of shareholders and execution of definitive agreement between the Parties.

SpiceJet share price also remains in focus as according to a PTI report, Ajay Singh, the chairman and promoter of SpiceJet, may be planning to sell off more than 10% of his ownership in the low-cost airline. According to the PTI news, Singh might sell up to 15% stake in company if the market stays favorable. Ajay Singh held more than 37% percent of SpiceJet's shares, according to the company's most recent holdings statistics.

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