SpiceJet shares rose as much as 6% after the announcement. (Representative)
SpiceJet on Tuesday said Carlyle Group's commercial aviation investments and services division will write off $40.2 million of the airline's lease arrears and convert $30 million of the arrears into equity.
The conversion of 100 rupees ($1.19) per SpiceJet share represents a 56% premium to Monday's closing price.
Shares in the budget airline rose as much as 6% following the announcement.
The writedown comes days after the airline announced it will convert contributions to Carlyle Aviation into shares and bonds. The airline has struggled to fully revive operations despite multiple fundraisings in the past year, and lags behind rivals IndiGo and Tata-owned Air India in terms of market share.
According to SpiceJet, the conversion will “significantly” increase Carlyle Aviation's stake in the airline.
Carlyle Aviation currently holds nearly 6% stake in SpiceJet, the latter said in a response to a Reuters inquiry. The airline did not disclose the stake Carlyle Aviation will hold after the conversion.
Late last month, the country's aviation authority placed SpiceJet under heightened scrutiny after a recent audit revealed “certain deficiencies”.
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